More bad news for Telecom in the Budget

It is pure irony that the party that sold Telecom in the first place, loc, stock and barrel complete with the local loop "bundled" is the party that is sytematically destroying the same company that they helped create.
I have never seen such an egegrious example of theft by a government. Theft of private property rights, theft of company value, theft of investment value.
Now Cullen in his budget speech has outlined further planned theft. That of parts of Telecom.
[quote]The Government’s announcements two weeks ago on telecommunications included unbundling the local loop, provision for naked DSL, removing the upstream limit on bitstream unbundling and increasing the powers of the Commerce Commission.

Those announcements also indicated a commitment to proceed at least as far as accounting separation for Telecom. However, it is expected that the Select Committee looking at the proposed legislation will also consider the merits of proceeding further on such matters as other forms of structural separation.

Many will argue these changes are overdue. Certainly, successive governments has been very patient with Telecom. But national interest must prevail. We cannot afford to be a barely middle range performer in telecommunications as a result of allowing the incumbent to continue to play a long defensive game.[/quote]

What does this signal to the world?

It signals that our government will nationalise your sorry ass if they don't like you. Seems strong but that is exactly what we have here. The government dithered over Air new Zealand, helped through injudicious statements to destroy their value and then was left to pick up the pieces. Now we are seeing the same game plan all over again this time with Telecom. 



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