Today Telstra is indicated how it will split (e.g., Australian Financial Review -). Need I remind the world that operational separation is just another form of regulation and the best thing would be a real change in structure.
Indeed, last year in New Matilda (click here) I argued that not only would this increase competition and overall welfare (lest that should be enough) but also that a split of Telstra would actually get the Federal government more money!
Now to work out why a broad win-win doesn't occur, requires us to locate some people who would lose out. The search is quite difficult and I'll see what I can do later.