the bureaucrats have won - a disaster, page-25

you have a point but only to a degree. yes the population density is much greater in the eurozone- so is competition.
The point is by bypassing the ancient copper network there will be real competition for the first time.

There will be no need to pay line rental to telstra. There will be no need to pay for phone calls- it will all be done VOIP. Everything except mobiles will revolve around the fibre- of which TLS is not the owner.

I think that the credit market have got it right- credit default swaps have widened dramatically folowing the announcement. Could this portend impairment charges on the copper network?


0225 GMT [Dow Jones] Australian government's broadband announcement negative for Telstra Corp. Ltd's (TLS.AU) overall credit profile, Deutsche Bank credit strategists say. Expect Telstra 5-year CDS to widen 30 bps to about 170 bps from yesterday's close. "We remain 'neutral' on Telstra's CDS, given the limited widening potential from current levels." Says government appears committed to establishing major competitor to Telstra. Notes Telstra's reaction today will "be a key element in determining the company's ultimate credit profile." Telstra CDS now 129-134 bps.(SRH)