Telstra pulls plug on high spend internet plan; sale delayed?

7 Aug 2006

Telstra has announced that its proposed AUD4 billion (USD3.1 billion) fibre-to-the-node (FTTN) project has been scrapped. The telco, which was in negotiations with regulatory body the ACCC as late as Sunday morning, argued that it could not justify going ahead with the scheme under the regulations proposed by the competition watchdog. Telstra’s shares immediately lost 2% of their value, prompting fresh doubts over the government’s plan to sell its majority share in the operator. Communications Minister Helen Coonan expressed her disappointment at the news, but stated today that she believed neither the announcement nor the declining share value would delay a decision on the sale.

Australia, Telstra (incl. Belong)