From: chris@suite.sw.oz.au (Chris Maltby)
Subject: Re: Cream skimming considered beneficial
Organization: Softway Pty Ltd
Distribution: aus
Date: 11 Dec 92 04:57:35 GMT

In <1992Dec11.034141.3723@trl.oz.au> djewell@rhea.trl.OZ.AU (David Jewell - Radio and Satellite Networks) writes:

>I wrote:
>>There's no doubt that both these companies are in business to make
>>profits, as is AOTC (but not the government). So it's exceedingly rude
>>to label them as "cream skimmers" - that's business.

>Why is it "rude" to say it as it is?

Because it's a highly emotionally loaded term. The conotation is negative.
If anyone is to blame for the "cream skimming" it's the Government which
introduced competition. But if Telecom had been as wonderful as everyone
is now saying (;-) there wouldn't have been a need to introduce competition.
So let's blame Telecom for being silly enough to create the climate for their
own demise.

>Can I call my neighbour using Optus? Does Optus provide Directory Assistance?
>Does Optus provide Payphones? Can I call Alice Springs East using Optus only?
>The answer is NO!!! Optus are a multinational company that are not benefiting
>Australia. They are skimming the cream from profitable areas of 
>telecommunications and using AOTC's equipment to do it! Used any Optus mobile
>equipment lately??? Except for the bill printing machine.

They've been in business for a very short time. You can hardly expect them
to offer a complete range of services on day one. Then there is the issue
of regulations and the function of Austel to consider. Some of the things
you mention are being considered by Telecom/Optus/Austel right now.

>>If what is really meant is that AOTC is somehow more warm and furry
>>because it cross-subsidises its loss making businesses then you need
>>a crash course in capitalism. It's just stupid to do this, or perhaps
>>it has an owner who doesn't care about business objectives much.

>Nothing wrong with capitalism and competition is there? Can I set up MY
>business in YOUR home using YOUR electricity and YOUR customers? You
>call that competitive capitalism???

So perhaps the Government should sell Telecom tomorrow so that it will
be a private company and safe from it's own owner gutsing its business!
Or perhaps we should just lie back and stop worrying about whether our
telecommunications industry is going in the right direction...

>>One of the great benefits I think Optus (and Compass) will do in
>>Australia is bring the hidden cross subsidies in our transport and
>>communications industries out into the open where we can examine the
>>cost/benefit ratios...

>And if you, as a CITY DWELLER don't like the cross subsidies what will
>you do about them?

I never said that I didn't think that (say) the phone service wasn't an
essential for country people and aught to be affordable for them. It was
you who suggested that we could only do this via cross-subsidy. We can
also do it via a direct subsidy too, if it has to be subsidised to make
the objective possible. Surely democracy is about the people deciding on
the distribution of resources and services, not some faceless accountant
in a grey building in Melbourne.

Chris
-- 
Chris Maltby - Softway Pty Ltd		Internet: chris@softway.sw.oz.au

PHONE:	+61-2-698-2322	"I'm waiting for X-Windows to become just that;
FAX:	+61-2-699-9174	 Ex-Windows" - A McGrath.