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US Senate: The Best Government that Money can Buy

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It has often been said, especially during the days of Joh Bjelke-Petersen's reign, that Queensland "has the best police that money can buy."

The same has often been said of members of the US government, including but not limited to Senator Ernest "Fritz" Hollings -- a/k/a the Senator from Disney -- proponent of legislation such as the Consumer Broadband and Digital Television Promotion Act, which would have outlawed all digital technology which did not contain DRM, and would make the DMCA look like a minor nuisance, by comparison.

It seems that Senator Jay Rockefeller carries on this proud tradition of whoring oneself out for 'campaign contributions'.  It's bad enough when talkback radio hosts become the paid mouthpieces of corporations, but when such behavior extends to legislators, it's unforgivable.  Instead of "cash for comment", the US seem to have a system of "cash for statute".

Wired.com have the full story.

After round one: Coonan 1, Telstra 0

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Telstra have lost round one of their deathmatch against the Federal government, part of their ongoing 'give us the money and nobody gets hurt' campaign:  Telstra Corporation Limited v Minister for Communications, Information Technology and the Arts (No. 3) [2007] FCA 1567.

Telstra brought this case because the Federal government had the temerity to give public money to a competitor of Telstra, to build infrastructure in regional areas which would have allowed actual competition for the supply of telecommunications services in those areas.  'Tortuous interference with monopoly rent' is an emerging tort in Australia, or so Telzilla would have the courts believe.

They also lost an earlier decision in this same case, over a legal professional privilege issue, so this might be more like round 2, or at least round 1.1.

[Update: imitation is the sincerest form of flattery]

The decision involves details of the tendering process which are, frankly, boring, and construction of provisions of the Federal Court Rules, which you probably aren't interested in.

What is interesting however, is what the decision reveals about Telstra's corporate thought processes, and their motivation for bringing the litigation.  There are quite a few such juicy bits in the decision, including that:

Telstra wave the litigation stick again

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Telstra just don't know when to quit...  News.com.au reports that:

TELSTRA has warned the expert panel assessing bids for the Federal Government's national broadband build that it must follow "best practice tender procedures" or "be vulnerable" to a challenge.
Literal translation: run the tender the way we say it should be run, or we sue.  Another manifestation of Telstra's current "give us the money and nobody gets hurt" philosophy.

Telstra: "ACCC are conspiring against us"

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The ACCC are bringing proceedings against Telstra, alleging contraventions of ss 52 and 53 of the TPA in Telstra's promotion of their "NextG" network.  Specifically, it is alleged that Telstra have engaged in misleading or deceptive conduct by representing that the NextG network "covers the entire country" and "has coverage everywhere you need it".  The ACCC are seeking interim injunctions against the advertising.

Telstra, true to form, have accused the ACCC of conspiring against them, saying that:

The ACCC is clearly hand in glove with the Government in doing everything it possibly can to undermine the interests of Telstra shareholders.

and that

This is anti-consumer, anti-investment, petty, regulatory garbage when Telstra is building a world's best mobile network with speeds as fast as any equivalent network in the world.

If Telstra dig the hole they're in any deeper, they'll be swimming in magma.

Telstra sic's ACCC on Coonan

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This just gets weirder and weirder...  After reporting three days ago that Telstra were suing Senator Coonan for the second time, Telstra has accused Coonan of having "misled members of the public to believe they are unable to acquire services from Telstra and that they can only acquire those services from Telstra's competitors."  Telstra have reportedly asked the ACCC to investigate.  Good luck establishing that Coonan's statements were made "in trade or commerce."

Telstra sues Coonan. Again.

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When Telstra took the federal government and ACCC to the High Court, arguing that the telecommunications access regime in Part XIC of the Trade Practices Act was unconstitutional, it signalled a new low point in the historically rocky relationship between the incumbent monopoly telco and the federal government.

When Telstra sued the federal communications minister, Helen Coonan, over her decision to award funding to a competitor to deliver rural broadband infrastructure and services, it was hard to imagine that things could get any worse.

Today brings news that Telstra is suing Coonan again, this time over her decision to amend the conditions of their carrier license to prevent the impending shut-down of Telstra's rural CDMA network, until such time as the replacement "NextG" network was an adequate replacement.

Telstra are sending an unmistakable message to the federal government - do anything to us that we don't like and we'll haul you into court.  Especially if it involves giving money or business to our competitors.

Telstra CEO Sol Trujillo has said that things could not be worse for Telstra under a Labor government.  I'm sure Telstra are praying for a change of government, because they have well and truly burned their bridges with the coalition.

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