Analysis of the Privatisation of Telstra - 1997-2002


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 they won the next election they 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 back on the agenda. However, at the end of that year the government took it off again, only to put it back on the agenda in mid 2003. This report looks back at the first and second partial sales of Telstra, and provides comprehensive analysis of T3.

Table of Contents

  • 1. Synopsis
  • 2. Nobody wants it, but we are going to get it
    • 2.1 Does anybody know why?
    • 2.2 The government has run out of ideas
    • 2.3 What about the national interest?
    • 2.4 Separate the network from the retail arm
    • 2.5 $5 billion investment required from the government
  • 3. Industry view on privatisation
  • 4. Consumer view on privatisation
  • 5. Economist’s view on privatisation
    • 5.1 Little economic sense
    • 5.2 Most privatisation deals are bad for taxpayers
    • 5.3 Not privatisation but corporatisation
  • 6. ATUG’s view on privatisation
    • 6.1 Without competition – a private monopoly
    • 6.2 Competition slipped from the government’s agenda
    • 6.3 No last-mile competition
    • 6.4 Key areas of concern
    • 6.5 Need for regulatory adjustments before T3 happens
  • 7. Historic Overview T1 and T2
    • 7.1 First privatisation tranche 1997
    • 7.2 Second privatisation Tranche 1999
    • 7.3 The final stage?
  • 8. Lessons learned from the US power disaster
    • 8.1 Everybody knew that this would happen, but no one acted
    • 8.2 Interactive technologies can help
    • 8.3 Governments fall for the short-term grab for money
    • 8.4 Telstra privatisation – disaster in the making
    • Exhibit 1 – Privatisation of 1/3 of Telstra 1997
    • Exhibit 2 – Community and Regulatory Safeguards (2nd privatisation tranche)

Related Reports

Purchase this Report


Licence Information

Focus Report Profile


Strategies & Analyses (Industry & Markets)

Number of pages 11

Status Archived

Last updated 7 Aug 2004
Update History

Analyst: Paul Budde

Share this Report

Purchase with Confidence

This is all fascinating and your way of presenting the information is extraordinary.

Gary Sorkin, Pacific Communication Group

Special Offers

Caribbean - Telecoms, Mobile, and Broadband - Statistics and Analyses
US$795.00 until 30 Oct 2019
(normal price US$1,590.00)

Venezuela - Telecoms, Mobile and Broadband - Statistics and Analyses
US$575.00 until 30 Oct 2019
(normal price US$1,150.00)

Sample Reports

A selection of downloadable samples from our Annual Publications catalogue.

Download a Sample Report

More than 4,000 customers from 140 countries utilise BuddeComm Research

Are you interested in BuddeComm's Custom Research Service?

News & Views

Have the latest telecommunications industry news delivered to your inbox by subscribing to Paul's FREE weekly News & Views.