The simple fact is no business, no telcommunications, provider wants to service anywhere it will not pay.
Task is to make it profitable for businesses to service these areas, which for involves government subsidy.
Our problem was how subsidy provided, was legislative requirement on Telstra, with financial incentive to others to cherry pick.
Now Telstra is private, the old legislative requirement needs cease.
IF allowed to continue there will be long drawn out court cases for compensation.
Simplest, easiest, way is for government to provide direct subsidy to the service providers.
Whether subsidy as cash or a tax credit to service areas where commercial is borderline or loss.
A generous tax deduction credit may interest more companies, while not requiring cash handed across.
Singtel did try involve other telcos as partners in their bid, many not prepared to commit the money, similar to elsewhere in Asia.
Singtel sort return of costs providing services plus a (small?) premium, smaller profit from servicing the network.
SingTel appears believe can make more servicing its own customers.
Singtel elsewhere in Asia where provides internet (usually in partnership with local ISPs) using cable, ADSL and rapidly expanding wireless in many areas with poor populations being serviced well.
Yes, the NBN really needs concentrate on developing the rural and regional infrastructure, which appears Government intention, the metropolitan areas will service themselves and still benefit from regional/rural/remote development.
Some still believe Telstra needs keep its monopoly, doubt they have lived rural or remote.
Telstra is delaying the NBN whilst it builds its alternate and milk$ as much as it can in the process, like most disappearing monopolies.
The National Broadband Network will in the end be available to major telcos at reasonable cost price, with minor telcos lacking discounts available to bulk users - similar to all commodity trading.
Telcos need provide other services to their customers, based on customer needs, in order to get them and keep them.
Telstra is setting itself up well to do this, IF only it can start servicing its many existing customers without alienating them...
Hold shares in SGT and TLS, just added some more TLS.
TLS Price at posting:
$3.09 Sentiment: LT Buy Disclosure: Held
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