Telstra Corporation Limited
(ASX:TLS) has been urged to act to level the playing field in the telco market for the benefit of the country’s future digital economy.
Vodafone Hutchinson Australia CEO Bill Morrow told an American Chamber of Commerce Lunch in Melbourne that Telstra’s co-operation in promoting competition would actually benefit the entire industry in the long term.
According to Mr Morrow, the problem lies in the fact that Telstra holds the majority of the infrastructure and – as a result – the revenue generated by the industry.
He says that other smaller players can’t justify expanding their own network deep into regional Australia, as the population base doesn’t justify the investment.
Mr Morrow also urged Telstra to be more forthright in sharing its network with other providers.
Telstra generated a net profit of $1.6 billion in the first half of fiscal 2013.
