The netco debate

I spotted this on Rod Drury’s blog. A really good synopsis of the politicking going on about the network seperation (netco) proposal by Telecom.  Rod’s statement  here would be the crux of the matter.


           I'm a bit puzzled by David C’s approach here.”


My read on this is that the threat of operational separation has been used by the government to ensure Telecom plays the governments game and they therefore win the political points.  Telecom has called the governments bluff here and Labour are stalling for time to think up an appropriate response.

Another thing i’ve noticed is that this government in particular are really reluctant to make decisions. Decisions polarise the population (that is some of them won’t like you and hence vote for you), decisions have consequences, decisions have a long term impact. All things that this government don’t like (given they way the love pointing fingers rather than doing anything about it, just look at Cunliffes bit in the Rod post). This leads to investment.

I also think that by putting investment fairly and squarely in the public arena (which seems to be the actual problem with our future network) the labour government feels slightly exposed.

Mr Cullen is about announce a massive surplus, which indicates that the government isn’t investing our tax back into our creaking infrastructures.  The problem the government has (despite its best efforts to point the finger for the out of control interest rate at home owners) the reality is that central government spending has played a large part in fuelling interest rates.

The other factor I think that is critical here is that up until this moment the government has had an ‘out’ on the much debated OECD broadband penetration and productivity reports. That out has of course been Telecom. This of course ignores tax reform, exporter incentives, a decent savings scheme, education reform and creating an environment where its easy to run your company or live for that matter.  By putting the network back into public hands the government becomes accountable. Hmmm, more tough decisions to make, ops can’t do that. Can’t actually do anything.

In fact that statement is truer than I originally meant it to be. By its complete mismanagement of the wider inter related issues with the economy, the government has painted itself into a corner because now, when we need spending the most,  they can’t as it is tip the manufacturing sector over and the rest of the economy with it.

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