Australia - Pay TV - Regulatory - Telstra-Foxtel Divestiture

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Last updated: 1 Apr 2005 Update History

Report Status: Archived

Report Pages: 13

Analyst: Paul Budde

Synopsis

This report was archived in September 2007 and has not been updated since April 2005. The fallout from the Foxtel deal is creating a significant new monopoly in Australia across platforms (telecoms and cable TV) and across industries (telecoms and media). After the Foxtel/Optus deal the Minister issued another show-inquiry, this time in the broader implications of the deal on media competition. The Australian Competition and Consumer Commission (ACCC) clearly recognised this threat and advised the Minister that Telstra should divest its interest in Foxtel. He flatly refused the ACCC recommendation. Telstra consultant Professor Henry Ergas took up the case for Telstra and once again I am crossing swords with him. The report also explores the role that Sam Chisholm might play in a possible divestiture.

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