Telecommunications in better shape than power

Media statement Tuesday, 14 February 2006

Telecommunications in better shape than electricity

Business will welcome Xtra’s improved business broadband services and price cuts up to 80 per cent announced in response to the December Commerce Commission decision and agreement between Telecom and TelstraClear, the Employers & Manufacturers Association (Northern) says.

“This was a substantial move forward for Telecom and we hope it will keep up the momentum,” said Alasdair Thompson, EMA’s chief executive.

“Credit should be given when due and its due now.

“Business needs world class telecommunications’ connectedness and competition but does not support the expropriation of property rights without proper compensation to achieve it.

“While today’s announcement by the Prime Minister on Government’s plans for telecommunications will be interesting, the ironic thing is business concerns about Telecom’s pricing and service are not as immediate as those on other infrastructure issues such as land transport, the price of electricity and its security of supply.

“This begs the question: Will the Government show as much enthusiasm for sorting out the larger and difficult infrastructure issues as it is for the politically safe and popular telecommunication issues?”

ENDS

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