Australian policy was designed to ensure the survival of at least one competitor for Telstra and to encourage the emergence of as many others as possible. Telstra supplied Australia's telecommunications services as a public monopoly until 1991. The company is now 49 per cent privately owned. .
The argument the Government has given for the privatisation and corporatisation of Telstra has been a budget conscious one where the proceeds of Telstra will provide a "one-off" opportunity to: 1) abolish Telstra's pastoral call rate and provide untimed local calls in extended zones in remote Australia; 2) increase funding for Networking the nation; and 3) pay off foreign debt left over by the previous government However, this is not true as the Minister of Communication, Senator Alston already has the power to direct Telstra to provide services and upgrade infrastructure. If the USO (Universal Service Obligations Act) or performance standards need changing, then the Minister should invoke his power to direct, and these changes should be made distinct from any attempts to sell Telstra.
Reform of the Australian telecommunications system has not produced the benefits predicted. In particular, Telstra has retained its market dominance despite the dissipation of billions of dollars in the development of duplicate infrastructure networks. Although the ACCC decision of Telstra to open competition has weakened its monopoly power, Telstra, despite aggressive competition, remains the thorn in every competing company's side and still its monopoly still exist in some part of telecommunication system in Australia. Telstra has 85 per cent of market share in local calls and 5 per cent in long distance, and obtain three out of every four dollars spent on telecommunications in Australia.
From the persistency of Telstra monopoly or "monopoly characteristic" in telecommunications in Australia, there is a possibility that Telstra monopoly will continue to exist in the near future.