Meerkat,
A break-up option for Telstra is clearly a possibility. Not desirable, but a possibility.
So too is separation out of the last mile /basic carriage network from a wireless /broadband company.
The former would either be publicly owned, or jointly owned by the operators under an equivalent USO (Universal Service Obligation) regime.
The latter would be 100% privately owned and free to compete however it likes.
To get T3 through, the Government may well be looking for some "left centre field" solutions, such as the above.
The thing about Telstra., page-2
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