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Thread ID: 74682 2006-12-01 03:49:00 I got a question about telecom Ninjabear (2948) PC World Chat
Post ID Timestamp Content User
503484 2006-12-01 03:49:00 www.stuff.co.nz

Just a short question

How will it benefit anyone if telecom were to split up?
Ninjabear (2948)
503485 2006-12-01 04:59:00 There may not be an easy answer to that question, as the situation is riddled through with politics.

But it is not uncommon for large organisations to consist of autonomous units accountable to a central holding company. Indeed, I'd tend to say that is the norm. In this respect Telecom is unusual.

Just one aspect of the monolith is the potential for cross subsidisation of Xtra by Telecom to the detriment of competing ISPs.

Without separately accountable units, there is no way of knowing.

When I was with Lucas, there was Lucas Holdings Ltd, the parent company, and then a host of autonomous Lucas companies with their own boards of directors, (who were almost all full time "working" directors, ie they actually came into work each day and did real work, not just get paid for showing up once a month at some junket), Lucas Electrical, Lucas Group Research, Lucas Aerospace, Lucas Gas Turbine Equipment, plus many many more.
Terry Porritt (14)
503486 2006-12-02 02:59:00 The "DOGS" of the telecommunications business are at it again . :groan:

Grovelling to the Government's Select Committee about how they can behave in the 21st century .

. stuff . co . nz/stuff/asset/telecom1 . pdf" target="_blank">www . stuff . co . nz

"Get Real" and "Wake up to yourself" . It's NOT going to happen!! .

You had your chance in 1999 when you first debuted ADSL . And you F^cked it up! . $1,000 for 10gig . :eek:

Get lost!! :mad:
Utopia (7787)
503487 2006-12-02 05:01:00 . stuff . co . nz/stuff/0,2106,3884203a28,00 . html" target="_blank">www . stuff . co . nz

Just a short question

How will it benefit anyone if telecom were to split up?

They are splitting one outfit into three, isn't that it? Therefore the people benefitting will be the new managers, administrators and sundry hangers on that will be needed .

Will we customers benefit?
rumpty (2863)
503488 2006-12-02 07:10:00 They are splitting one outfit into three, isn't that it? Therefore the people benefitting will be the new managers, administrators and sundry hangers on that will be needed.

Will we customers benefit?Traditionally, this is not the case: see power company deregulation (there are probably other examples, but since I was involved in this one, this is the example I use). Customers have the option to change suppliers (ie. retailers - more truthfully, resellers), but because of the paperwork and hassle involved, tend not to... Prices have not come down as a result of deregulation...
johcar (6283)
503489 2006-12-02 07:48:00 Most of the implements I would like to recommend for splitting them up would not make suitable viewing for general audiences. R2x1 (4628)
503490 2006-12-02 08:08:00 Most of the implements I would like to recommend for splitting them up would not make suitable viewing for general audiences.

Same ole **** it travels through, look at some of the isp's and see how the can't handle it now, easy to blame telecom sometimes....
jd74 (10834)
503491 2006-12-02 08:51:00 I agree with Jocar. In theory splitting up large companies creates market competition between smaller companies and the consumer is the winner. In theory.

Instead what happens is that each small company has to frantically run around trying to get, steal, and retain business, set up public relations departments, OSH supervisors, employment advisors (personel), spend on advertising etc. The upshot is that no money is saved, new non-productive jobs are created, and the consumer is completely bamboozled.
Winston001 (3612)
503492 2006-12-02 10:19:00 See if even mild mannered Winston001 says that "Bam led (to) Booz" you can see that the evil empire strikes again.
I wonder if they ever considered using their resources to "simply do it better than anyone else"?
No chance, it would take too long to appear on the sacred "bottom line". Inane TV adverts get quick results, and are tax deductible. System Error.
R2x1 (4628)
503493 2006-12-02 11:31:00 www.stuff.co.nz

Just a short question

How will it benefit anyone if telecom were to split up?


Just a short answer.

The theory is this:
Because Telecom owns all of the landline system, it can give its offshoot, Xtra, a better deal than it offers rival ISPs. You could call it a subsidy.

If the landline sytem was split off into a completely separate company, all ISPs would face the same line costs - their base for deciding which services & plans to offer. You could call that a level playing field.
It should lead to more choices & some cheaper services.

Well, that's the theory...
Naturally, Telecom's not happy about it.
And as others in the thread have suggested, there are several reasons why it might not work out that way.
Laura (43)
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