Telstra to keep Foxtel stake

23 Jun 2003

The Australian government on Friday rejected a proposal for fixed line incumbent Telstra to relinquish its 50% stake in the country’s leading pay TV operator Foxtel. The announcement comes despite the recent release of a report by the Australian Competition and Consumer Commission (ACCC) which raised the possibility of the telco offloading its stake in Foxtel and its hybrid fibre coax (HFC) network. The ACCC said that Telstra’s ownership of the pay TV operator means it has the power to veto the supply of Fox channels to competing networks, resulting in a blatant conflict of interests.