Telstra shareholder vote on NBN deal to miss 1 July deadline

18 Mar 2011

Australian fixed line incumbent Telstra has reportedly discarded a self-imposed deadline for its shareholders to vote on the AUD11 billion (USD10.8 billion) agreement with the state relating to the telco’s role in the country’s National Broadband Network (NBN) project. According to Reuters, Telstra has said that while negotiations between it and the government are continuing to take shape, it is understood that a number of issues remain unresolved. As a result the operator said it now looks unlikely that it would be able to meet the 1 July 2011 deadline it had set for the matter to be settled.

As previously reported by CommsUpdate, last month Telstra revealed that it had finalised ‘key commercial terms’ with NBN Co, the public-private company set up to oversee the construction of the country’s NBN. Telstra CEO David Thodey noted that along with the agreement with NBN Co, which is expected to deliver around AUD9 billion in post-tax net present value, his company had also reached an in-principle agreement with the Federal Government regarding the specific measures that will increase the value of the deal by a further AUD2 billion. Telstra provisionally agreed commercial terms relating to copper network decommissioning, dark fibre and duct usage, exchange usage, certain rollout arrangements and other matters with NBN Co, while the pair at that date said work on completing the associated operational details and ensuring that all contingencies were still being addressed.

Australia, Telstra (incl. Belong)