Analyst: Conroy's blunder number not news
- 27 October, 2009 14:47
- Comments 8
The $25 billion difference in valuations of Tesltra's core network between the telco and the Australian Competition and Consumer Commission (ACCC) is not news to the industry, according to an IDC telecommunications analyst.
Senator Stephen Conroy blundered in tabling a January 2009-dated ACCC document, which was marked confidential, containing a valuation of just under $8 billion for Telstra's consumer access network, in parliament this week. Telstra has valued its own network at $33 billion.
A representative for the communications minister has said it was done in error and that the Government regretted the action.
Shadow communications minister, Senator Nick Minchin, slammed Conroy's mistake and questioned whether the public could trust the minister to roll out the National Broadband Network (NBN).
While reports have surfaced that the ACCC document was being used by the Government in its negotiations with Telstra over the telco's role in the NBN, IDC telecommunications analyst, David Cannon, said it was hardly surprising there was a difference in opinion over the network's worth.
"It does vary depending on how you calculate it. I think that for some time now there has been a variance of opinions on the value of the network, including the ducts, pits, etc," he said. "The finance analysts have it valued at the lower end of the number. They have it valued at pretty much the same price as the ACCC."
That number sits at just under $8 billion. Yet, Cannon said it is difficult to compare valuations as different components and methodologies are used.
"Whether there is a real comparison of apples for apples is hard to say. It is quite a complex thing to take apart and put a value on," he said.
"Most of the stuff that was in the report wasn't news to anyone at the end of the day. The fact it was considered or marked confidential and that there was a leak of the report, that is something to be concerned about. But overall the information that is in there isn't news to anyone in the industry or the government. Anyone that says otherwise obviously isn't close enough to the actual situation."
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Comments
Anonymouse
It's like the difference the car yard gives you for the value of your really old car when you want to sell it to them, or if you wanted to buy one off them... lol.
Surprise surprise, Telstra thinks that their "end of life" copper network is worth $33billion, and no one else does.
Now the real question is, I think that my 1998 Ford Capri is worth $58,000, I wonder if I can get Telstra to buy it off me?
Anonymous
If government does not want to pay Telstra's asking price, they can piss off. No one is forcing them to buy. They can go ahead and build a new one, and it will cost them fourty-three billion dollars. That's their figure, not mine.
Anonymous
The real 'difference' is that no-one wants your crap 1998 Ford. Ergo, you've got Buckleys of getting your 'blue sky dreaming' $58 large...! Conroy however, is absolutely desperate, to get Telstra's network, for his 'blue sky dreaming' NBN. Now all we have to do is get the thieving grub to pay the fair price required, instead of letting him STEAL it through his Stalinist standover tactics....!!!
Anonymous
Telstra's shareholders don't even think its worth that much.
Its a question of replacement cost ($33Billion) vs actual worth (<$8Billion).
Anonymous
Actually, it doesn't matter what something is physcially worth, it matters how much someone wants it.
And Conroy is just proving again that he is a complete clown and shouldn't be responsible with cleaning the Senatorial toilets let alone participating in government.
The document was not only not censored, the CIC information was highlit... Oh, and only info re: Telstra. This guy is either doing this deliberately or through sheer ineptitude. Either way, Rudd needs to put this turkey down.
Not holding my breath of course, Rudd hasn't curtailed his ministers previous antics at all.
Mekon
Similar to a lot of those above, there is often a big difference between a so called valuation and the asking / buying price.
The government has said that they want to buy, and this is their valuation. Fine. Telstra have their asking price - also fine. Now, does the Government want to pay the asking price? Well, that depends on whether they want to pay a lot over their own valuation of the network, or whether they would prefer to build their own from scratch.
There is no other solution, unless Conroy has decided that he prefers a life of piracy, and decides to steal it from Telstra.
That is what I'm afraid is going to happen given the politics of this alley cat!
Anymonous
The ducts and pits are useful for fibre, after the old, green, noisy, copper stuff is ripped out.
I wonder what is the form of legal "ownership" of such fittings under public footpaths and roads. Freehold title seems absurd, lease from local council ? (for how long?). Telstra might say it "owns" anywhere it digs a hole, but does the law agree ?
Having permission is not the same as ownership.
Goresh
"Now the real question is, I think that my 1998 Ford Capri is worth $58,000, I wonder if I can get Telstra to buy it off me?"
That depends. If your Ford Capri is the only vehicle in existance, and the alternative is to smelt the ore, make the steel, build a factory etc to make another one, $58,000 is starting to sound like a bargain.
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