Sunday, September 20, 2009

Is Prime Minister Kevin Rudd of Australia, a true Leader?

I have been waiting with great anticipation the emergence of the real Mr. Rudd, from behind the nice suits, the great rhetoric and well prepared 3 liners that seem to roll-off his tongue in response to any question of note levelled at him.

Today I believe we start to see his Leadership emerge. He is promising to correct a huge error on the Australian business landscape; the break-up of Telstra. Leaders operate from their essence and do the right thing rather than the most popular one (or the one that wins more votes).

Kevin Rudd is in a great position to do this. His unquestionable electoral lead protects him from a back-lash of some level that his government will undoubtedly face. Greedy organisations (that have raked-in millions if not billions of dollars) and their powerful media partners will embark on scaremongering campaigns designed to protect their income at the cost of every tax-payer.

The telecommunications industry in Australia is well behind the rest of the world with Telstra traditionally overcharging for its services and under-delivering, protected by its monopolistic position.

And yes, some of us will be impacted by seeing a short-term lowering of share values. This is the time (as we recommend in the article "Vote with your Money") that you divest from Telstra and invest in the Telco that you have chosen as your service provider. In any case, you stand to win as investor or not, once the scare-mongering and the defense mechanisms of Telstra pass, we will be left with a competitive environment where prices will be lower and service will be better; as has been the experience in other countries that have truly followed the path of de-monopolisation.

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