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Publisher & Editor-in-Chief Leo Simpson, B.Bus., FAICD Editor Greg Swain, B.Sc.(Hons.) Technical Staff John Clarke, B.E.(Elec.) Robert Flynn Rick Walters Reader Services Ann Jenkinson Advertising Enquiries Leo Simpson Phone (02) 9979 5644 Regular Contributors Brendan Akhurst Garry Cratt, VK2YBX Julian Edgar, Dip.T.(Sec.), B.Ed John Hill Mike Sheriff, B.Sc, VK2YFK Philip Watson, MIREE, VK2ZPW Bob Young Photography Stuart Bryce SILICON CHIP is published 12 times a year by Silicon Chip Publications Pty Ltd. A.C.N. 003 205 490. All material copyright ©. No part of this publication may be reproduced without the written consent of the publisher. Printing: Macquarie Print, Dubbo, NSW. Distribution: Network Distribution Company. Subscription rates: $55 per year in Australia. For overseas rates, see the subscription page in this issue. Editorial & advertising offices: Unit 34, 1-3 Jubilee Avenue, Warrie­ wood, NSW 2102. Postal address: PO Box 139, Collaroy Beach, NSW 2097. Phone (02) 9979 5644. Fax (02) 9979 6503. PUBLISHER'S LETTER Selling Telstra is the wrong move So Telstra is to be sold off. Regardless of the election outcome this month, it seems that the sell-off of Telstra is a certainty. Both the Labor and Liberal parties appear to be mesmerised by the huge amount of cash that Telstra will realise. The estimates range from 24 billion to around 40 billion. In the face of that sort of money and the need to reduce Government deficits, there does not appear to be much prospect of a careful analysis of the costs and benefits of such a sale. We’ve seen Qantas sold, the Commonwealth Bank sold and Telstra is likely to be next cab off the rank. The really bad aspect of selling off Telstra now is that telecommunications is one area of the economy guaranteed to have huge growth over the next 10 years or more. So if Telstra is worth a motsa today, it’s going to be worth a great deal more in years to come. But if the Government sells it off now, it won’t get the benefits of that growth; it won’t get the dividends and it won’t have the asset. Sure, it will get tax revenue on the profits but somehow I don’t think that will amount to anywhere near as much. Moreover, if Telstra is sold, you can bet that many of the factors which have prevented it from raising its charges or which force it to provide service in uneconomic sectors will no longer apply. Timed local calls (for everyone) are a certainty. After all, if Government controls still apply to an asset to be sold, that would reduce the asking price, wouldn’t it? You can also bet that a fully privatised Telstra would reduce its workforce even further and that will have undeniable costs to the Government budget. And let’s not forget the considerable benefits that flow to Australian industry because Telstra is such a large buyer in the marketplace. Would that continue after Telstra becomes controlled by an overseas company? Oh, I haven’t mentioned that, have I? If you are unhappy about Telstra being sold off but think it might be worthwhile because of good effects on the budget or maybe the environment, as envisaged in the Liberal Party policy, then think about overseas control. Qantas is now controlled by an overseas company; ie, British Airways. With $40 billion as the asking price for Telstra, it’s highly likely that an overseas corporation will be the major buyer. Do we really want to see that happen? Leo Simpson ISSN 1030-2662 WARNING! SILICON CHIP magazine regularly describes projects which employ a mains power supply or produce high voltage. All such projects should be considered dangerous or even lethal if not used safely. Readers are warned that high voltage wiring should be carried out according to the instructions in the articles. When working on these projects use extreme care to ensure that you do not accidentally come into contact with mains AC voltages or high voltage DC. If you are not confident about working with projects employing mains voltages or other high voltages, you are advised not to attempt work on them. Silicon Chip Publications Pty Ltd disclaims any liability for damages should anyone be killed or injured while working on a project or circuit described in any issue of SILICON CHIP magazine. Devices or circuits described in SILICON CHIP may be covered by patents. SILICON CHIP disclaims any liability for the infringement of such patents by the manufacturing or selling of any such equipment. SILICON CHIP also disclaims any liability for projects which are used in such a way as to infringe relevant government regulations and by-laws. Advertisers are warned that they are responsible for the content of all advertisements and that they must conform to the Trade Practices Act 1974 or as subsequently amended and to any governmental regulations which are applicable. 2  Silicon Chip