Gloves off

Telcos are cutting up rough with the regulators. KPN has started proceedings against the Dutch state for regulatory discrimination. Telstra is threatening to supend a 3.5 billion Aussie dollar network investment. Sol Trujillo wants the government to guarantee his profits. Nice business!

It seems the regulatory honeymoon post the 2001 crash is over. Regulators have been somewhat sympathetic to debt-burdened telcos getting back on their feet, but operators should not have thought it would last for ever. Regulators are back on the case. Well in Europe anyway; the FCC went into retirement a while back.

This is all the telcos' own fault of course - especially BT's. BT has been flexing and stretching its business in all directions, putting its network operations on a risk basis, and yet Ben Verwaayen keeps coming back with record profits.
Regulators can't see why telcos need more help. And in Europe, Viviane Reding has the perfect case for structural separation for everyone.