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QUOTE (drrc @ Tuesday 11/04/06 10:40pm)


< more future trouble for tls (and other mobile providers) >


And even more, it seems? (Later in this post). Back on Thursday 02/02/06 05:18pm in a reply to my (ALL TIME) favourite and MOST respected poster, DAWNO, I wrote:


<I continue to struggle with their ingrained, uncompetitive "culture" they have within (TLS), that still has too many 'features' remaining, from where they have come. They fail to listen to the market place & act too slowly for my liking. They certainly do not listen to customers, is my experience!! They retain too much of a monopolist mentality at most levels, for mine. Big is not always best and their years as the "Fat Controller" are numbered.>


Nothing has changed, it seems? Management still cannot make, simple $20.00 decisions, let alone $10,000.00 ones!!!! Policy overides "common sense" business and will remain so for a helluva long time. (My brother once explained that such "cultures" like the public service in Canberra can need at least 20 years to change, in "real terms". He said, you can change the Govt every three years but the incoming party within our democracy, is "lumped" with the same "culture" and safety "guidlines" as that, the outgoing party had. Nothing really changes!!)


Last month, (with 2 days of the month to go), my computer failed, completely! I eventually learned after 5 or, so calls to Telstra staff in both "service" & accounts (over a period of 1.5 hrs or, so) that my 10 GB "unlimited" download plan had been passed by some 200MB's and that (automatically), I had now been placed onto the 64KBPS "service". When I explained this was not "strong enough" to activate my "usage meter" it was then explained, that this unlimited download plan provides "UP TO" 64KBPS speed and that in reality, "you could be on 1 - 3KBPS, 7 - 13KBPS etc, dependent on how many had "overdrawn' on this "unlimited' download plan", the accounts manager said. (Thus the "weaker" download speed, that effectively shut down usage of my computer).


"You'll now have to wait untill the start of next month (2 days) before you can use your system", is what he explained!! I WAS IRATE. I explained that this is the 1st time I could recall having this problem, that I'd been a "customer", well over 45 years and that my business of 16 years had had all of it's services, (mostly with Telstra), during that period.


I THEN TRIED A NEW "TACT". "What if I approve right here and now, an additional charge of say, $20.00, to get it put back on"? Could not be done, he said in a sympathetic tone. I BECAME ANGRY!! ..... "What if I was to approve a $10,000.00 loading for the two days, could you get me back on then"??


"I'm sorry", he replied, "can't do" ....." that's the "deal" you signed up for"!! "You'll just have to wait the 2 days, because we have 100's of thousands of similar cases each month and we make NO exceptions"!!


I thought WOW !! Just 100,000 paying an additional $20.00 (reconnection) FEE each month would be revenues for TLS, of $12M each year? That all it needed was a "clause" in the agreement, stating of this additional charge, "fact".


I "whinged", told him of my addiction to the market and my urgent need to sell some stock on the Nasdaq that night, that I'd say nice things about Telstra if he could put me "back on" ........and .... HE SAID: "I'll do it for you this time, only"!


I THANKED HIM SINCERELY. In spite of the fact, that I had "chewed up" (at least) $150.00 in actual "manhour costs", for the 1.5 hrs I'd engaged TLS staff, over a $20.00 "decision", that ended up being FREE (& a nice PR effort), on this manager's final understanding.


OH, and about that predicted " more trouble" statement earlier, I really think it is worth reading this article:


Yes .......Telstra, their shareholders (in particular) and others need to fully understand the ramifications of this ongoing "barney".




Lost In Speculation: Can Google Beat AT&T?


Jason Miller By Jason Lee Miller


Imagining Google's next move has the same dreamy qualities of buying a lottery ticket - a mountain of cash pulls the heavens closer and the term "extravagance" loses its meaning. In short, it's fun to imagine the possibilities, even if a dream, of what Google can achieve.


One of the more interesting dreams is born of sheer perfect timing. In June, the U.S. government will auction off chunks of radio spectrum with bids expected to go as high as $10-$15 billion. The owners of these spectra can, conceivably, set up a wireless broadband network.


Prior to the upcoming auction, so the theory goes, Google and a host of Internet companies, frustrated with seemingly fruitless battles with a Congress sympathetic to telecommunication giants who want to tighten control over Internet access, take a peak at their account balances and realize they can become ISPs. And they can do it rather easily.


These same telecoms that have been muscling anti-Net Neutrality measures into federal and state-level legislatures have also been hounding Google and bandwidth-exhaustive content providers to share the cost of delivery.


But what if Google, either alone or with partners like Amazon and eBay (even Microsoft) could buy that radio spectrum, set up a wireless network, and bypass their struggles with the telecoms altogether? We the people, continuously under the thumb of telecom extortion, would herald them as heroes.


There are two upcoming spectrum auctions. The one in June offers 1710-1755 and 2210-2155 MHz frequency bands. A second one, which could happen as late as 2008, is for a larger and possibly cheaper 700 MHz frequency band.



"A consortium of new media companies could wind up leading the pack to buy that spectrum (700 MHz) and provide a third (broadband) pipe into homes," said Washington Analysis' George Dellinger. AT&T's Jim Cicconi, in that same Investors.com article, wouldn't be surprised at unusual bidding from companies who don't even have concrete plans.


"It wouldn't shock me to find a range of unusual bidders in the upcoming spectrum auctions," said Cicconi. ""Experience has shown that some companies haven't needed a well thought-out business plan to bid (in earlier auctions)."


FULL STORY - (Check the ADS too!! LOL !!)







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In reply to: LookingConfident on Friday 14/04/06 02:46pm

The experience you've related is just SO Telstra, well so much any large bureaucracy really but particularly Telstra. I switched to Optus for like experiences a couple of years ago but you know, they're not much better.

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TLS is far from being a spent force.


Sometime ago I opined that TLS would get a favourable hearing from the ACCC and the Gov when TLS was expressing its vision for the future and the business desire to be assured of getting a commerecial return on its investment in FTTN.


Now it seems that opinion is close to being revealed as fact.


The minister in aletter to the PM talked re a breakthrough in ACCC/TLS talks.


It seems that TLS 's competitors will be allowed to resell TLS services and that their investment in TLS exchanges will become 'stranded.'

TLS will resume monopolistic characteristics with FTTN making the copper network obsolete.


Furthermore theminister is basking in the sunshine of not granting TLS 'safe harbour' for its FTTN investment. She is promising a 'holistic' decision on ULL.


My reading of the situation is very bullish for TLS in the next 6 months when the process for T3 is decided.

Senator Minchin has not come into play yet. But he will and his controibution for shareholders in TLS will be quite decisive.

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In reply to: michaelirish on Monday 17/04/06 12:27pm

Tend to agree...


But when government protection goes, then what ? http://www.sharescene.com/html/emoticons/icon14.gif


A bit off-topic, but does any1 understand what exactly the Future Fund is?

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In reply to: nizar on Monday 17/04/06 01:09pm

< A bit off-topic, but does any1 understand what exactly the Future Fund is? >


The Future Fund, which has been set up by the federal government to cover public services superannuation liabilities, could receive shares from the full sale of Telstra if the securities can't be sold, the head of the fund has confirmed.


Future Fund chairman David Murray said the government was still formulating its strategy for the sale of its remaining 51.8 per cent stake in Telstra, which is likely to occur in late 2006.


But if the government can't sell all of the six billion or so shares expected to be offered in a public float, the Future Fund might have to be set up a separate fund to manage any leftover securities.


"Clearly, the fund will either get cash from sale and/or shares," Mr Murray, the former head of Commonwealth Bank of Australia said in an interview with independent online financial news service Eureka Report.


"If there's a lot of shares there that don't match a normal weighting of investment in the market, then clearly a separate mandate is needed to characterise that brief from the main one to invest the cash.


"So yes, there would have to be separate mandates and what's in the mandate for any Telstra shares will come right back to the sales strategy of the government, so I can't predict that until they determine it."


Mr Murray also said the Future Fund's investment strategy would be based on a long term horizon that would aim to generate real rates of return of 4.5 per cent to 5.5 per cent per annum.


Amongst similar funds around the world, Mr Murray said he particularly admired the strategies of American university endowment funds, which invest to maintain income flows to support campuses and student education.


"So there are some fantastic examples around the world but the university endowments in America, I think, are probably the best example of what we've got to try and achieve," Mr Murray said.


As the fund's strategy evolves - and Mr Murray hopes to see it up and running by mid-year - it would likely take a balanced approach to onshore and offshore investment.


"That would be a matter for the board to determine but generally this fund should be viewed as a long-term pension fund in style and one that would have a proportion of its assets offshore and a proportion onshore, so the best lead to take is a balanced superannuation fund approach," he said.


The Future Fund will begin with seed capital of $18 billion and be topped up with another $25 billion or so upon the full sale of the government's Telstra stake.


It's expected to build up assets to $140 billion by 2020 to pay public sector superannuation liabilities falling due in ensuing years.


Telstra shares currently trade around $4, valuing its listed equity at $24.29 billion.



It was suggested elsewhere, that the following has been taken from some broker notes....


The Government could potentially create a "short squeeze" in TLS shares if they handle the T3 sale effectively - a risk the shorters and under-weight's have not considered.


Lets just say they shove $10bil of TLS stock into the Future Fund, place another $10bil via an entitlement issue to existing shareholders, then that only leaves about $5bil of stock to be placed via a global bookbuild. $5bil doesn't go far in a stock that will have a post deal index weight of 5.2% of the ASX200.


While the February interim result won't be great, that's already well known and priced in. The stock will pay an interim div in March of around 20cff. I think the physical short trade has run its course in TLS. Watch this space, the Federal Government and its advisors could call the bluff of all the shorts.


Cheers !! HOPE IT HELPS.



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In reply to: nizar on Monday 17/04/06 02:09pm

When the Gov protection goes.....?


ATM TLS's biggest worry is being half pregnasnt with Gov 51% ownershipo.


Once that goes TLS will be on the up.



The FTTN will be built and all TLS' revenues will be certain and secure.


No compeitor will be able to build an FTTN.

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