For the general public, from media reports, the telecommunications industry is in chaos.

However reports show a different story. The Australian telecoms industry is in good shape particularly since 2000. Telecommunications revenues are up by 5.5% in 2005, and it's forecasted to rise another 4.1% for 2006.

The average growth for the last five years is 4.6%. This may or may not have had an impact on why, on 17 August 2005 the Australian Government set in motion the abandonment of its policy for the operational separation of Telstra by not selling the remaining 51% of Telstra shares.

In August the Australian government also shook up the various cosy telecoms relationships in Australia. They finally revealed the problems Telstra was and is facing. This was something that the industry had been aware of for years.

As a result Telstra's share price fell to more realistic levels. In early September the government introduced its new telecoms Bill into Parliament. For the full (free) analysis report of the Telco crisis and new legislation follow the links below.

What does this mean for customers? What does this mean for the industry? We can only wait and see.

Our sources for this article or for a full report go to www.budde.com.au or mailto:pbc@budde.com