TELSTRA will consider a voluntary separation of its wholesale and retail arms as well as the sale of some assets to the federal Government’s proposed $43 billion broadband network in a spectacular about-face that effectively dumps the aggressive four-year strategy championed by chairman Donald McGauchie and chief executive Sol Trujillo.
The radically different and more conciliatory approach is part of an attempt to ward off the threat of much greater government intervention in Telstra’s business. The company’s board has set up a special committee of directors and executives to come up with a new approach and to negotiate with the Government.
Even if the economics still don’t add up for the NBN, breaking Telstra up would be a massive win for the Government, and an even bigger win for consumers.
Now if only we could do something about censorship 🙂