From: Phil Morgans [pmorgans@iprimus.com.au]
Sent: Wednesday, 17 September 2003 6:42 PM
To: ECITA, Committee (SEN)
Subject: Submission on the Sale of Telstra

The Secretary, Senate Environment, Communications, Information Technology and the Arts Legislation Committee, Parliament House

 

Please accept my brief remarks as a submission to the Committees inquiry into government proposals for the full sale of Telstra.

 

We live near Candelo in the Bega Valley Shire, which is in the federal electorate of Eden-Monaro.

 

I oppose the full sale, as I have the partial sale so far, for the principal reason that once sold, there will be no reliable mechanism by which Telstra will be made accountable for the delivery of telecommunication services of equivalent standard to those available in the capital cities. The proposal to sell Telstra constitutes an anti-nation-building policy by which rural economies will be further marginalized.

 

Despite all Telstras claims to the contrary, telecommunication services here are terrible.

 

Mobile phone coverage is woeful, there are frequent unexplained interruptions to landline services and internet connection speeds are so slow as to render the internet a total waste of time and money for many people in the district. For others, the connection speed obtained from one connection to the next is as good as a lottery. Even during a single session, speeds fluctuate wildly between the barely acceptable and the hopelessly inadequate.

 

The governments proposal to fund additional capital expenditure by Telstra is a drop in the bucket compared to what is actually needed and represents a tiny proportional increase in Telstras capital program. The governments response to the Estens Inquiry is in my view a white wash. I made a submission to that Inquiry and nothing the government has proposed since would address in any meaningful way the problems with Telstra in the area that I outlined. The problems I raised in the submission will continue and probably get worse if Telstra is sold off completely.

 

Despite the laying of new cable up our road in March this year to supposedly cope with demand for new services, that capacity is already fully utilized as our new neighbours discovered when they applied for their place to be connected. Telstra has again had to resort to line splitting and the use of the bane of our lives, pair gains, to connect them.

 

Due to the use by Telstra of myriad contractors to perform even the most basic trenching, cabling and jointing work, no-one associated with one part of the job or another has a clue what the other contractors are doing. When our neighbours phone was connected, the contractor doing the trenching would have almost certainly severed the cables from the exchange and the one into our property had we not been on hand to locate them for him.

 

Our MP, Gary Nairn has told me in a letter that all these issues are commercial decisions for Telstra. The sad thing is that the way the government sees it, he is probably right. If providing a decent service to rural subscribers is to be determined on a strictly commercial basis, then we are most likely doomed to a service that is sub-standard. If on the other hand, there is room for our elected representatives to make representations on our behalf to Telstra, which is after all a monopoly when it comes to capital works in areas like ours, then at least we might have a chance. In the end it would come down to the quality of our MP, which is something we have the power to change at the ballot box.

 

If any sale is to proceed, Telstra should be broken up, its commercial operations floated off and the network should remain in government hands as a publicly owned monopoly so as to ensure that Telstras network can play a real role in Australian nation-building.

 

Phil Morgans

P.O. Box 95

Candelo NSW 2550