BG> Given that a 1 cent (i.e. 4%) reduction per 25 cent call
BG> fee results in a loss of revenue to Telstra of $1.2 million
BG> (source: Frank Blount, ABC-TV),

RS> The 1-Jun P2 report of that speech in the SMH has that
RS> at $120M for a 1c reductions, and quotes him as saying
RS> 'a 10c reduction is big bucks' The $120M figure fits
RS> much better with Telstras gross revenue figure too.

BG> The figures above are those which were given to Laurie Oakes
BG> by Frank Blount during his Press Club interview last week

Presumably he got his tongue tangled in the interview situation.

BG> (a fascinating show it was, too).  He basically stated that a 10c
BG> reduction would cost $120m, and even 1c would mean a direct loss
BG> of revenue of $12m. Ergo, I stuffed up by accidentally adding a
BG> decimal point above.  Oh well, at least the SMH got it wrong too.  |-)

That remains to be seen. We dont actually know what the real figure is.

BG> a 25% overall discount equates to a loss in the order
BG> of $7.5 million, not at all what I'd call a trivial amount.

RS> True, and its a huge amount on the $120M figure.

BG> Using the true figures, 25% discount is actually closer to $75 million,

It still looks wrong when you consider Telecoms total turnover. A total
income from local calls of $3B using 1c per $120M is quite plausible.
I find it hard to believe their total income from local calls is only $300M.

--- PQWK202