Telstra warns investors of NBN “risk” (Australia)
www.WirelessFederation.com/news: Telstra shareholders have been requested by Telstra’s second-largest shareholder, fund manager Australian Foundation Investment (state-backed NBN would be permitted to offer retail services) not to sell the firm’s fixed-line assets to the government at a bargain basement price. It has been felt that Telstra is entitled to get appropriate value for its assets, including its customer traffic and the company can expect a fair outcome†by the government.
Telstra’s copper network is eyed by the Federal Government as part of its controversial next-generation fiber network project, costing A$43 billion ($39.26b). According to the government, it will force Telstra to sell its 50% stake in pay TV operator Foxtel and forbid it from bidding for LTE spectrum if it fails to ink a fixed-line sale deal with NBN Co.
AFI managing director Ross Barker, on the other hand warned that there was a risk that the state-owned NBN could become a government-legislated monopoly. State-backed NBN would be permitted to offer retail services under the draft bill.
Telstra against NBN draft legislation (Australia)
www.WirelessFederation.com/news: The recent change to the Australia’s National Broadband Network (NBN) proposal has been severely opposed by telecom operator Telstra which has expressed its deep concern by the change effecting negotiations over the sale of assets.
A new state-owned broadband network company will be allowed by the draft legislation to provide retail services, instead of just wholesale services. According to the company, 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.
Negotiations over the sale of assets to the government is currently on the cards of Telstra which has promised to spend up to AUD43 billion (USD38.6 billion) on rolling out high speed internet access throughout the country.
Senate delays the bill to split Telstra
www.WirelessFederation.com/news: The bill proposing crucial changes to regulation of the telecommunications market and designed to cleave Telstra in two has been delayed by the government for the second time. The delay was undesirable for the government as it was hoping to use the legislation to force Telstra into a deal to participate in its $43 billion national broadband network and the delay.
Telstra and the government are locked in private negotiations regarding the participation of the telco in the NBN. However, both parties require more time to finalize a deal.
The two sides reached an agreement last December allowing Telstra to move traffic from its copper network to the NBN’s fibre-to-the-home network. There are speculations that the bill could be delayed until after Telstra’s half-year results in the middle of this month, when the telco is expected to announce progress in its dealings with the government.
Australian govt strike a deal with Telstra on NBN model
www.WirelessFederation.com/news: Government-backed NBN Co agreed for the participation of Telstra in the $30 billion next-gen broadband network rollout. The deal is said to be finalized on a preferred model†according to which Telstra’sn copper access network will undergo a progressive transition†to an FTTP network as part of the NBN.
According to communication minister Stephen Conroy, legislation for the structural separation of Telstra has to be postponed in early 2010. However, the government was determined to pass the bill priority early in the New Year.
This legislation will provide a framework within which any agreement with Telstra can be independently evaluated by the ACCC.
