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In 1997, New Additions Were Made to the Competition and Consumer

Question 47

Multiple Choice

In 1997, new additions were made to the Competition and Consumer Act to regulate telecommunications.What issues detrimental to competition are likely to arise in copper (fixed line) telecommunication networks?


A) Telstra, as a profit-maximising private instead of a public company, is likely to offer poor service
B) telecommunications are a very complex business, and the lack of available expertise limits competition
C) the advent of wireless technologies (mobile phones and wireless internet) threatens Telstra's profits, forcing it to raise prices
D) the fixed line network has very high fixed-costs, leading to a natural monopoly that Telstra can exploit

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