Yesterday’s news that the Government will force a structural separation of Telstra’s wholesale and retail arms has unleashed a tidal wave of commentary this morning. Whilst your Research Director mulls over the likely consequences of structural separation for his upcoming special report, Telstra on the Stand, this is our take on the best of the commentary.

Whilst the announcement looks as though the Government has pointed a gun at Telstra, Matthew Stevens in The Australian argues that David Thodey’s bargaining position isn’t quite as weak as it appears.

In the same paper, Bryan Frith has a different take, suggesting that if this is a win for consumers, which it appears to be, it must be at Telstra’s expense. Stuart Wilson of the Australian Shareholders Association makes the same argument but more stridently.

Alan Kohler of Business Spectator takes a more nuanced view, saying that this changes everything and perhaps nothing at all. The key question, he argues, is how Telstra can leverage its low-margin fixed line business into high margin mobile and media products ‘before it is eroded by competition on the NBN.’

All in all, this is clearly an issue that has deep and lasting ramifications for Telstra shareholders. What those ramifications might be is less clear. As this column (which also offers a nice wrap of all the major columnists) by David Lewellyn-Smith says, ‘like a dial tone, the coverage is remarkably uniform. Most pieces review the same dimensions of government tactics plus the long-term strategic implications for Telstra. The absence of original angles suggests most have been taken by surprise by the turn of events.’

Greg’s special report will offer some clarity on what is currently a very unclear situation. And his colleagues promise to leave him alone until it’s finished. Sort of.