Summary
Battersby (2016) assesses the implications of mobile network sharing on leading regional infrastructure supplier Telstra, following competition regulator Australian Competition and Consumer Commission (ACCC) and government inquiries signalling reform. By ‘declaring’ Telstra’s infrastructure to enable competitors access, supporters of regulation contest this improves market and social outcomes.
Key Concepts
This article relates to the political and regulatory environment as ACCC regulatory powers under Part XIC of the Competition and Consumer Act 2010 (Cth) may threaten Telstra’s growing 63% regional market share lead (AFR 2014). Under the public interest theory (Pigou 1932), regulatory interventions underpinned by society's best interests can be justified as correcting market failure …show more content…
325) has generally delivered competitive advantages (Porter and Kramer 2002). Through responding to social demands, one may suggest Telstra’s focus on employee involvement and environmental leadership (Telstra 2016) reflects an integrative strategic approach (Garriga and Mele 2004). For instance, by investing $175 million into social community programs and reducing greenhouse emissions intensity by 56% from 2015-16 (Telstra 2016) demonstrates high ‘centrality’ under Burke and Logsdon’s CSR framework (1966, p. 497). However, the extent of this approach is questionable where in 2013 to minimise costs Telstra underpaid subcontractors responsible for removing asbestos in infested pits (A 2013). Here, CSRS actions may provide the means to increase goodwill and advance economic profits (Porter and Kramer 2002, p. 6). Nonetheless, despite its profit-maximising focus, Telstra has successfully integrated ‘voluntarism’ (Burke and Logsdon 1966, p. 497) within its business model with employees contributing over 8186 volunteering days (Telstra 2016) providing reputational
Battersby (2016) assesses the implications of mobile network sharing on leading regional infrastructure supplier Telstra, following competition regulator Australian Competition and Consumer Commission (ACCC) and government inquiries signalling reform. By ‘declaring’ Telstra’s infrastructure to enable competitors access, supporters of regulation contest this improves market and social outcomes.
Key Concepts
This article relates to the political and regulatory environment as ACCC regulatory powers under Part XIC of the Competition and Consumer Act 2010 (Cth) may threaten Telstra’s growing 63% regional market share lead (AFR 2014). Under the public interest theory (Pigou 1932), regulatory interventions underpinned by society's best interests can be justified as correcting market failure …show more content…
325) has generally delivered competitive advantages (Porter and Kramer 2002). Through responding to social demands, one may suggest Telstra’s focus on employee involvement and environmental leadership (Telstra 2016) reflects an integrative strategic approach (Garriga and Mele 2004). For instance, by investing $175 million into social community programs and reducing greenhouse emissions intensity by 56% from 2015-16 (Telstra 2016) demonstrates high ‘centrality’ under Burke and Logsdon’s CSR framework (1966, p. 497). However, the extent of this approach is questionable where in 2013 to minimise costs Telstra underpaid subcontractors responsible for removing asbestos in infested pits (A 2013). Here, CSRS actions may provide the means to increase goodwill and advance economic profits (Porter and Kramer 2002, p. 6). Nonetheless, despite its profit-maximising focus, Telstra has successfully integrated ‘voluntarism’ (Burke and Logsdon 1966, p. 497) within its business model with employees contributing over 8186 volunteering days (Telstra 2016) providing reputational