Australia - Privatisation of Telstra

Synopsis

In November 1997, the government sold one-third of Telstra (Dilution of Public Ownership), worth $14 billion. In March 1998, the government indicated that if it won the next election it would sell the remaining two-thirds of Telstra, and in mid-1999 a second tranche, T2, was sold. In 2002, the controversial subject – with all its implications for rural services, competition, shareholder return, government debt, political ambitions, amongst others – was put on the backburner. However, with the stunning election victory in 2004 the government pushed on September 14th 2005 the sale of Telstra through the Parliament, despite widespread opposition. T3 was launched in October 2006.

Table of Contents

• 1. Synopsis
• 2. New telecoms legislation
• 3. Full sale of Telstra highly unlikely
• 4. HistoRy of the Process leading to T3
  • 4.1 Largest selldown ever
  • 4.2 How serious is the government about the Telstra share price?
  • 4.3 T3 thumbs down from NFF
• 5. the government withstood people power?
• 6. Telstra sale in 2006
  • 6.1 Government will hammer the sale through
  • 6.2 What should be done before privatisation?
  • 6.3 Families first
  • 6.4 Telstra and the media review
  • 6.5 Australia missing out on innovations
  • 6.6 I am not philosophically opposed to privatisation
  • 6.7 Give ACCC similar powers to Ofcom in the UK
• 7. Privatisation entering a new phase – wake-up call for the ICT industry
• 8. Bribes considered in forcing the privitasation issue
• 9. Privatisation back on the agenda
  • 9.1 Another no vote in late 2003 and again in early 2004
  • 9.2 Why privatise?
  • 9.3 Not in the national interest
  • 9.4 No long term infrastructure plans for Australia
  • 9.5 Conflict of interest?
  • 9.6 Structural separation
  • 9.7 Under government ownership Telstra most profitable telco
  • 9.8 Telstra: a utility – little hope for increase in share price
  • 9.9 The prospectus should disclose the following
  • 9.10 Sold in three trenches?
• 10. What is Telstra’s true value?
• 11. Lessons learned from the US power disaster
  • 11.1 Everybody knew this would happen, but no one acted
  • 11.2 Interactive technologies can help
  • 11.3 Governments fall for the short-term grab for money
  • 11.4 Telstra privatisation – disaster in the making
• 12. Related reports

• Exhibit 1 – Overview of government shares in telcos