Sunday, February 27, 2011

Telecom leader in Australia fears monopoly..

Optus chief executive, Paul O’Sullivan, fears that major Australian telecom competitors joining forces will hurt customers and the industry far more than improving it. An article explains: “He cautioned that Telstra should be prevented from using the $11bn in payments it will receive for its customers as a way to subsidise their transfer to the NBN. He said this will create an "uneven playing field" where other service providers will be disadvantaged as their costs of customer acquisition will be significantly higher” (http://www.theaustralian.com.au/australian-it/telecommunications/nbn-co-should-be-replaced-by-rba-like-body-says-optus-chief/story-fn4iyzsr-1226013358950).

One of the ways the Optus chief executive plans to combat this is by allowing regions to be responsible for their own customer satisfaction within Optus. He wants to see competition within the company bring higher satisfaction to customers while giving those responsible for their region a positive incentive for investing in customer satisfaction.

By recognizing the cares and concern of the people and wanting to provide them with the best possible service, he is working to avoid being ignored in the increased competition between Optus and other companies. “"There will be a land-grab in the first years of the NBN," he said. "It will in fact be ‘stickier' for customers than any previous service, as it will be carrying television, broadband and (things like) cloud services. It will be difficult to churn" ” (http://www.theaustralian.com.au/australian-it/telecommunications/nbn-co-should-be-replaced-by-rba-like-body-says-optus-chief/story-fn4iyzsr-1226013358950).

O’Sullivan wishes that the government and other companies would recognize the impact on telecommunication competition that will be had if Telstra and NBN Company do join forces. As a leader of Optus he is certainly making his points to the public for why he stands against the partnership and is doing what he can in the meantime to help his clients and potential future clients.

Optus chief executive, Paul O’Sullivan, said "There is a huge cliff edge for any second entrant who wants to be a challenger in those application areas," he said. "I don't have the answers, but I think it's a debate that needs strong discussion if we're to avoid the development of monopoly-type providers in the application world"(http://www.theaustralian.com.au/australian-it/telecommunications/nbn-co-should-be-replaced-by-rba-like-body-says-optus-chief/story-fn4iyzsr-1226013358950)

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