Telstra is a prime example of a government imposed price control in Australia which has not been significantly effective. Price controls were implemented towards Telstra in 1989 when it was the only telecommunication provider and have been placed ever since. In the Telecommunications (Consumer Protection and Service Standards) Act 1999, Telstra agreed to retail price control arrangement but are now currently reviewed since 2010 by the Australian Competition and Consumer Protection (ACCC) who monitor and report to the Minister for communications.
This first work term was done at Telus Corporation (also known as TELUS), one of the three major telecommunications companies operating in Canada. The duration of the work term was spent working in the Enterprise Architecture department as a Technology Architecture Assistant, and working with the Wireless Development team as a temporary Software Tester.
This competition helped reduce telecommunication costs dramatically, benefiting many other industries and the overall competitiveness of the Australian market. The improvement of competition across the whole economy was the main objective of the governments National Competition Policy. This policy included the Corporatisation and Privatisation of Public Trading Enterprises such as Australia Post and Telstra, competition reform in the professions, the opening up of access
The Australian Competition and Consumer Commission (ACCC) is an administer of the competition and Consumer Act (CCA) which is to prevent collusion among the firms and to prevent the individual firm which break the market equilibrium with their market power. Well competitive market would deliver efficiency costs, faster innovation, prevention of unduly concentrated markets, business freedom, wealth distribution, and enhancement of international competitiveness. Therefore, the ACCC is playing a crucial role in Australia, and their activities can be divided into four categories; (1) the policies for anti-competitive conduct and anti-competitive practices, (2) the mergers policy, (3) the consumer protection policy, and (4) four pillars policy.
Telstra is Australia’s largest and most efficient telecommunications company, which provides one of the best-known brands in the country. They offer a full range of services and compete in all areas of telecommunications both domestically and internationally. Telstra’s vision is to enhance its position as the leading full service telecommunications and information Service Company in Australia as well as to expand its presence internationally. (Telstra Website, 2008)
1.0 IntroductionTelstra Corporation is a telecommunications and information services company. It provides a range of services including fixed line services, Internet access, and business services. Telstra is the market leader in the telecommunication industry in Australia, with one of the most prominent brand names. However, its products and operating services face an increasing threat from competitors. An analysis with recommendations of Telstra marketing is necessary in order to improve its performance.
Although Telstra has a plan to get the funds to help disable employees as an ethical practice, there is an ethical issue cannot be ignored. It is lack of respect for customer privacy. In 2012, Next G mobile phones users’ URLs which they had viewed in their phones before was sent to a Canada website company (Netsweeper). And then, the company will use the users’ information and what they interested in to make a web filtering product. The Netsweeper is a third party which is relevant to Telstra. Although customers did not know their privacy data was exposed, Telstra sent information about the clients to do their own business for make more profits. This is an unethical issue as well. When the incident had occurred, Telstra
The Australian competition and consumer commission commenced an inquiry looking into Telstra’s rural monopoly in September 2016(4). They concluded that giving service providers roaming capabilities off the Telstra network may have an adverse effect on price levels and there was no evidence that there would be a decrease in Telstra’s pricing through more competition. Currently rural and regional customers benefit from the high competition in metropolitan areas because the industry has consistent Australia wide pricing schedules for their consumer services (5).
Rogers Cable is the leader in Canada’s cable television market, with a over 2.3 million cable television subscribers and 500000 internet subscribers. In 1993 the Canadian government relaxed the norms of telecommunications industry followed by an application in 1999, allowing local carriers to change the content of the information passing through their networks. This led to increased competition in the market and the customers enjoyed a lot of choice. As such Rogers Cable focused completely on increasing its subscriber base and
4. Environment Performance Commencing the environmental perception, Telstra has mainly approach on minimizing the environmental impact. Also addressed improve the environment performance to their suppliers and customers. Telstra focused on three elements of its environmental performance, which are reduce energy use and carbon emissions for excellence operation, quantifying the products and services from environmental customer value proposition, actively minimizing environmental impact to gain the sustainable supply chain (Telstra 2015).
After largely dominating the telecommunications market for a century, Telstra’s competition has recently become more widespread. In order to effectively adapt to this changing market, Telstra has employed the use of market segmentation in an attempt to
According to the theory of the 'invisible hand' of the marketplace, as advocated by Adam Smith, the marketplace naturally determines the optimal price of a good or service. But even Adam Smith viewed the development of monopolies with some trepidation and believed that government intervention was required to cease their proliferation. During the 1980s to the 1990s, it seemed fairly clear to most industry analysts that cable television functioned as a monopoly in a manner that was deleterious to consumers. Cable television had few competitors, except in the form of analog 'rabbit ears' which did not provide the full range of channels or quality that cable provided. In many areas, only a single cable company dominated the market and subscribers had few alternative options.
The telecommunications regulation that existed in Canada in the 1970s and before were high. The telecommunication industry in Canada was mainly dominated by Bell Canada. Regional service providers and long distance resellers emerged in the telecommunication industry in the 1980s and the 1900s due to deregulation by the federal government. During the late 1990s the wireless market exhibited a growth in momentum. In the 2000s it witnessed a rapid growth but this was not the case in Canada. The government is determined to ensure Canada’s telecommunication market is opened up and it even modified CRTC decision. CRCT had argued Globalive
When only a few sellers offer a product with little regard to competition it is called an oligopoly. It is different from a monopoly because multiple corporations are involved, but the effects on the consumer are the same - bad. Although competition is usually in the best interest of the consumer, it is not always in the best interest of the corporation. If we examine the two leading soft drink producers, Coca-cola and Pepsi-cola, we see a prime example of an oligopoly (Zachary, 1999). As things are presently, each of these soft drink companies has about half of the soft drink market, and examined from a world-wide perspective that is a pretty large market. Either one of them, Coke or Pespi, could conceivably lower their prices in
(Abelson). There are three major companies, that as (Abelson) states, ‘Control 90% of the Taxi operators in Sydney’. As a result an oligopoly market structure is formed, as there is some competition between these major companies within the Taxi Service industry. However due to ‘allegiances’ (Abelson) that these companies
This market allows organization a free long term ability to adjust their good services and prices with the changes in the market conditions. Thus AT&T should take advantage of the freedom in this market structure and ensure that their supply and prices are correlated to their demands.