🚀 go-pugleaf

bigk@cs.uq.edu.au (Kathleen Williamson) wrote:

>In <320fd4bd.163353815@news.zip.com.au> michael.wines@purethought.com.au (Michael Wines) writes:

>>This is typical of Telstra's arguments that there is a shortage of
>>bandwidth, and that scarcity requires rationing. There is no bandwidth
>>shortage. Telstra's artifically managed shortages are just a
>>confidence trick to keep prices up so that they can stay fat and lazy.

>Every now and again, the media tells me that Telstra has just made a huge
>profit.  My question is simple:  why does Telstra want to make more money?
>Isn't the amount that they're making sufficient - they're presently
>covering costs and making a profit - or so we're all led to believe - 
>so why the desire for more and more $.
When people here of profit in Telstra they automatically think that some big
wigs or shareholders are getting their pockets full of cash. (like you have in
banks)
The profit that Telstra makes falls largely into: Cross subsidisation (sp?) and
network re-investment.
ie. Payphones never run at a profit. So rather then not have any payphones
Telstra cross subsidises from other profitable areas (ie trunk calls). 
ie. Network re-investment is the means by which we have the FMO project. That
is the upgrade of all of Australia's exchanges & networks to digital systems.

>kath
>--
>                                ~~~~~~~~
>Kathleen Williamson The University of Queensland Brisbane Q 4072 Australia 
>Email: bigk@cs.uq.oz.au	   Fax:  61-7-3365 1999	   Tel:  61-7-3365 2906
>Disclaimer: Opinions expressed are mine and not those of the university