Optus to ditch fixed line investment if Telstra claim NBN?

21 Oct 2008

ZD.net is reporting that Telstra-rival Optus has claimed it will not invest in fixed line or internet networks if the incumbent is successful in its bid for Australia’s national broadband network (NBN). Optus, which leads Telstra’s main rival for the project, the Terria Consortium, is understood to believe that the NBN represents the country’s last opportunity for competition in fixed line infrastructure, with Optus CEO Paul O’Sullivan quoted as saying, ‘If the government simply does a cosy deal with Telstra, and fixed line competition suffers in the process, then we will look for more attractive places to put our capital. So, no doubt, will many other potential investors.’ The report claims that, should Telstra be awarded the NBN contract, Optus could look to the wireless sector as a possible area for investment.

Australia, Optus, Telstra (incl. Belong)