Telstra: to split or not to split

8 Mar 2005

Australia’s coalition government is in two minds over whether to split incumbent telco Telstra Corp into separate units before its privatisation. The National Party, the smaller political party in the government, wants the company to be broken up ahead of the AUD28 billion (USD35 billion) sale of the government’s 51.8% stake, claiming that it will encourage a more level playing field in the fixed line sector, but the conservative Liberal Party has said that it is not in the long-term interests of either investors or consumers to split the company. The Nationals have said they plan to step up pressure to have competition and regulatory issues dealt with before the sale.

In a separate story, Telstra has revealed possible plans to sell its directories and advertising unit Sensis in the future, in a listing independent from the Telstra sale. The company said that Sensis is not a core business and is likely to be worth more as a separate company.

Australia, Telstra (incl. Belong)