But this comes back to my question:
Assuming all that is true, why then is the government leaving in place the requirement for Telecom to continue to serve these customers with limited price access and local calling?
to quote the Dom Post:"Mr Joyce said Telecom should still be obliged to provide landlines at rates capped by inflation and unmetered local calls, but should meet the entire cost of serving uneconomic customers with profits it earned from other customers. "
Is voda forced to serve uneconomic customers? no. Is any other telco forced to serve uneconomic customers? I can't think of any.
Sure you might have some uneconomic customers (every business does) but you are never forced to serve them, and in fact, if you are doing your job you try to identify these customers and get rid of them since they destroy shareholder value.
If, as you say, these customers are economical to serve then there should be no need for that requirement – the industry will be lining up to serve these lovely profitable customers.
It seems on one hand the gov are implying the customers are economical (by removing the levy), but then by leaving the requirement in place to continue serving them they are implying that they are not.
The point being: if they were economical then that requirement would not be needed - Telecom (or voda or whoever) would be happy to compete for those customers.
I think Paul is the wrong person to be asking why 'Telecom should still be obliged to provide landlines at rates capped by inflation and unmetered local calls' maybe it is due to a misunderstanding, like the not using phones for gps navigation thing.
Vodafone is currently forced to serve these unecomomic (over copper) customers by providing subsidies to telecom, and those with any sense would be paying less for their poor quality phone service by using home phone wireless (something that telecom don't offer because the uneconomic customer subsidies are far more attractive).