AbstractThe Howard Coalition Federal Government has passed legislation to privatise one third of Australia's national phone carrier Telstra. There are many issues associated with the sale of such a large publicly owned organisation. Furthermore the Prime Minister, John Howard is on the record as saying the full privatisation of Telsira in the longer term is desirable.
The following analysis briefly considers global privatisation trends and the economic theory underpinning those trends. An analysis of the advantages and disadvantages of privatisation is presented.
This paper briefly looks at the implications for Australia and its citizens and businesses of the one third sale of Telsira. The primary purpose of this paper however is to consider the advantages and disadvantages of a possible future sale of the renlaining two thirds of Telsira. This is being done in order to see whether a fully privatised Telsira would be a net benefit to Australia.
The analysis of the full privatisation of Telstra includes social and economic factors. In order to aid this analysis a case study of the British experience of privatising its national phone carrier has been reviewed. Also, general lessons learnt by other overseas telecommunication privatisation experiences have been outlined. The Senate report into the one third sale has been reviewed and the recommendations of both the majority and government minority reports considered. The reasons for considering the Senate reports into the one third sale was in order to see if the issues canvassed by the Senate were relevant to helping predict the likely outcomes of the possible future sale of the other two thirds of Telstra.
This paper also considers other important issues related to the full sale of Telstra, such as issues associated with the level of foreign ownership and control, legal issues and industry and development and research considerations.
Conclusions have been drawn on the basis of the research and the recommendations made do support the full privatisation of Telstra but with reservations.
The findings of this paper are that a fully privatised Telstra can benefit Australia if strict regulation and competition policy is enacted and enforced by the government.
|Date of Award||1998|