Comments on: Competition in the South Pacific http://www.buddeblog.com.au/competition-in-the-south-pacific/ From Paul's Desk Thu, 20 Nov 2008 15:05:54 +0000 http://wordpress.org/?v=2.6.2 By: Sydney Lawrence http://www.buddeblog.com.au/competition-in-the-south-pacific/#comment-79745 Sydney Lawrence Wed, 21 May 2008 22:21:19 +0000 http://www.buddeblog.com.au/competition-in-the-south-pacific/#comment-79745 Paul thank you for the opportunity to express my thoughts on the competition problem or discussion we have in Australia at this time. To me, competition must be total and open. If, as you inform in your above article a market is to small to allow more than one competitor that will be determined by investors with an interest in that market. To set regulation and distort the market will in the long run cause severe problems in that market. Let us look at Australia. If as has been claimed Telstra is a monopoly, and proceeds to charge exorbitant prices, an interested Party will see this and seeing an opportunity will enter the market to challenge Telstra on price and service and hope to succeed in their endeavour. This is the only check and balance that is needed in Australia. Paul would you be so kind as to give me your opinion on this scenario. Optus wins the NBN tender. Optus builds the system and then Telstra, in the spirit of competition, decides to build an FTTN to compete with Optus. Considering their demand for competition without monopoly, could the ACCC or Optus demand legislation to stop Telstra, and stop competition and in fact make Optus a monopoly. Thanks again. Paul thank you for the opportunity to express my thoughts on the competition problem or discussion we have in Australia at this time.

To me, competition must be total and open. If, as you inform in your above article a market is to small to allow more than one competitor that will be determined by investors with an interest in that market. To set regulation and distort the market will in the long run cause severe problems in that market.

Let us look at Australia. If as has been claimed Telstra is a monopoly, and proceeds to charge exorbitant prices, an interested Party will see this and seeing an opportunity will enter the market to challenge Telstra on price and service and hope to succeed in their endeavour. This is the only check and balance that is needed in Australia.

Paul would you be so kind as to give me your opinion on this scenario. Optus wins the NBN tender. Optus builds the system and then Telstra, in the spirit of competition, decides to build an FTTN to compete with Optus. Considering their demand for competition without monopoly, could the ACCC or Optus demand legislation to stop Telstra, and stop competition and in fact make Optus a monopoly. Thanks again.

]]>