Telstra: Government to blame for lack of deal

Telstra: Government to blame for lack of deal

Telco giant supports the Government’s Greenfields legislation

Telstra (ASX:TLS) has blamed the Federal Government and NBN Co for delaying the finalisation of a deal for shareholders until mid-2011.

The claim was made in a letter from Telstra CEO, David Thodey, and chairman, Catherine Livingstone, to shareholders released earlier today.

“We want to make it clear that we are still focussed on bringing a deal to shareholders by the middle of 2011,” it said. “With the release of the NBN Co bisiness plan…we now have more certainty on key issues such as points of interconnect and NBN Co’s pricing.

“The definitive agreements will set out in detail how NBN Co will pay approximately $9 billion (post-tax Net Present Value) for Telstra to decommission its copper network and HFC broadband product, and for the long term lease of Telstra infrastructure.”

The comments are in line with those of Communications Minister, Senator Stephen Conroy, who said a deal would likely be sealed between April and June of 2011.

Telstra also used the letter to support the Government’s moves to implement Greenfields legislation to force property developers to build fibre optic cable infrastructure in new properties around the country.

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Tags NBNTelstraSenator Stephen ConroyDavid ThodeyCommunications MinisterCatherine Livingstone


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