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Telecom lacks business acumen: Moore



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JOHNiMOiRE Shadow M in is te r fo r Business < £ Consumer A ffa irs

TELECOM LACKS BUSINESS ACUMEN : Moora COMMONW EALTH PARLIAMENTARY LIBRARY C. I. s.

A shortage of business acumen within Telecom has led to the Introduction of timed calls according to John Moore, Shadow Minister for Business and Consumer Affairs, also responsible for the privatisation debate.

"Because Telecom has failed to plan ahead and expand its telephone network, average consumers will suffer.

"Mr. Hawke's assertion that 90% of telephone users will pay less is yet another empty promise.

"The question remains - how long will any price decrease last and how hard will the remaining 10% be slugged?

"Australians are fed up tfith Government monopolies like Telecom which continue to squeeze more and more from the pockets of business and consumers, while operating under the plushest public service conditions.

"As telecommunications usage has increased, prices have also increased - which runs directly opposite to economies of scale.

"We should be experiencing real price reductions in our phone bills with the recent burst in telephone usage by business.

"Instead of investing in future markets, Telecom is resticting: them. Timed calls will only deter people from using the telephone.

Mr. Moore said it's become clear that Telecom is unable to handle Australia's telecommunications needs and the industry must be opened up to competition from the private sector.

"If Telecom can't stand the heat in the kitchen, its time they got out.

19 January, 1988

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