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Telstra and ACCC closer to agreement on NBN deal

CFO, John Stanhope, claims resolution possible before year's end

Telstra could reach agreement with regulators over its participation in the National Broadband Network (NBN) before the end of the year, the telco says.

Telstra chief financial officer, John Stanhope, said discussions with the Australian Competition and Consumer Commission (ACCC) was the last step for the $11 billion transaction to be completed.

"We still believe that a final decision by the ACCC is achievable before the year end," Stanhope said during a briefing to the financial community in Sydney on Friday.

The deal with the Federal Government and NBN Co - the government-funded company charged with building and operating the NBN - received shareholder approval last month.

Also, Telstra has said it has received a favourable ruling from the Australian Taxation Office.

Under the deal with the Federal Government and NBN Co, Telstra will progressively decommission its copper-based network and allow NBN Co to access its pits, manholes and exchanges, and sell some infrastructure.

In return, Telstra will receive $11 billion from the Federal Government, with the financial benefits to come over a 30-year period.

The ACCC is reviewing Telstra's structural separation undertakings (SSU) and is yet to issue a ruling.

The regulator in August said it could not accept a crucial aspect of the SSU, saying the telco had no compliance plan for its commitment to structurally separate its two arms from 2018.

Stanhope said the ongoing discussions with the ACCC centred on the rules around equivalence.

"We continue to believe that none of the issues raised by the ACCC in relation to the SSU are insurmountable," Stanhope said.

Nominations for the 2012 ARN IT Industry Awards open on Tuesday, June 12.

More about: ACCC, Australian Competition and Consumer Commission, Australian Taxation Office, etwork, Federal Government, Telstra

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