Bare knuckle broadband
The brawl over the national broadband network has reached a new level, but the depth of passion from both camps shouldn't come as a surprise - one false move could spell disaster.
What stunned me about the KGB Interrogation of the Terria consortium chairman Michael Egan and the Telstra chairman Donald McGauchie was the passion from both sides and the huge stakes involved. It's not often you see two well known identities taking the gloves off and engaging in bare knuckle fighting. It's certainly the most dramatic set of interviews we have undertaken and I don't want spoil readers enjoyment of the action by extensive quotes.
However some key points emerge. Egan believes that the Telstra board have made a fundamental mistake and that if the Terria tender wins it will rip billions from the Telstra profits. And Egan is very confident ...
Then you talk to the Telstra chairman McGauchie who describes the Egan scenario as something that would only happen in North Korea. He says it will not happen in Australia. But he then launches into a vicious attack on Egan saying the former NSW treasurer had dragged the NSW economy to a disaster that ranks alongside the efforts of Victorian Premier of the 1980's John Cain.
In my view there are at least three issues that go to the core of the matter. The first is the technology. Telstra says what Terria are proposing is not viable. The second is the return required by Terria to get their funding. This is an infrastructure project that carries a rival technology risk. Telstra says that risk requires a commercial return. The third issue is the likely court delays that will come with any attempt to adopt Terria. Over to you Stephen Conroy.
Telstra shareholders need to understand that their future profits and dividends may depend on the outcome. Although I have no doubt that if Telstra loses then it will invest in a massive wireless promotion that will take shine off any investment in fibre-to-the-node. Conversely Singapore Telecom clearly believes its investment in Australia is at risk.
When you see leaders fighting bare knuckle you know there are big stakes on the table.
However some key points emerge. Egan believes that the Telstra board have made a fundamental mistake and that if the Terria tender wins it will rip billions from the Telstra profits. And Egan is very confident ...
Then you talk to the Telstra chairman McGauchie who describes the Egan scenario as something that would only happen in North Korea. He says it will not happen in Australia. But he then launches into a vicious attack on Egan saying the former NSW treasurer had dragged the NSW economy to a disaster that ranks alongside the efforts of Victorian Premier of the 1980's John Cain.
In my view there are at least three issues that go to the core of the matter. The first is the technology. Telstra says what Terria are proposing is not viable. The second is the return required by Terria to get their funding. This is an infrastructure project that carries a rival technology risk. Telstra says that risk requires a commercial return. The third issue is the likely court delays that will come with any attempt to adopt Terria. Over to you Stephen Conroy.
Telstra shareholders need to understand that their future profits and dividends may depend on the outcome. Although I have no doubt that if Telstra loses then it will invest in a massive wireless promotion that will take shine off any investment in fibre-to-the-node. Conversely Singapore Telecom clearly believes its investment in Australia is at risk.
When you see leaders fighting bare knuckle you know there are big stakes on the table.
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