Telstra opposes NBN draft legislation

2 Mar 2010

Telstra has hit out at the Australian government’s recent change to the country’s National Broadband Network (NBN) proposal, saying it is ‘very concerned’ by the change which could impact negotiations over the sale of assets. The draft legislation would allow a new state-owned broadband network company to provide retail services, instead of just wholesale services. ‘Such an outcome would run counter to the core purpose of the NBN and the government’s primary policy objective of restructuring the industry to have separate providers for retail and wholesale fixed network services,’ the company said in a letter to shareholders. Telstra is currently in negotiations over the sale of assets to the government, which has promised to spend up to AUD43 billion (USD38.6 billion) on rolling out high speed internet access throughout the country. The operator is also facing being forced into separating its wholesale and retail arms, something it says could cost AUD1 billion and take five years to complete, and which would make agreeing terms for the sale of fixed line assets more difficult. Following the letter to shareholders, shares in Telstra reached an all-time low.

Australia, Telstra (incl. Belong)