NBN Co Legislation could increase separation costs: Telstra
- 02 March, 2010 10:10
- Comments 4
Telstra has warned that the NBN Co Exposure Draft Legislation, if enacted, may dramatically raise the price of any compensation the Federal Government may need to pay as a consequence of splitting the company.
In a letter to shareholders, CEO David Thodey and Chairman Catherine Livingstone wrote that the draft legislation, released on 24 February, raised for the first time the prospect of NBN Co becoming a Government funded retailer, in addition to a wholesale network.
“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 letter reads.
“We are very concerned about this potential change in the Government’s position. If enacted we would need to factor this into the financial consideration required to achieve an agreement that is in the company’s and your best interests.”
Thodey and Livingstone added that the company’s position on the Telecommunications Legislation Amendment (competition and Consumer Safeguards) Bill 2009 – due to be debated in the senate in the second or third week of March – also remained unchanged.
“While we support the Government’s National Broadband Network 9NBN) vision and sensible reforms for our industry, we have always said the legislation is likely to destroy shareholder value and makes an agreement with NBN Co and the Government harder to achieve,” the letter reads.
There were also several “complex issues” about which the company awaited clarification from the Government and NBN Co, however the company remained “engaged” with the Government and NBN Co, Thodey and Livingstone wrote.
The Draft legislation is available online.
Submissions can be made on the Legislation until March 15.
Communications Minister Stephen Conroy’s office was contacted for comment, but did not immediately respond.
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Comments
texmex
Yes, that evil NBN/Telstra legislation can slow down the Net, frighten dogs, give you cancer and condemn your family to slavery.
Oh, for the good old days of the PMG department when the customers did what you told them because there was no competition.
More seriously, could someone please send Telstra a copy of the story about the boy who cried wolf?
Robert
Either Telstra deals and they get some value for their copper network or the government just builds to NBN anyway, reducing the value of the copper network to nothing. The government has the ability and wilingness to gut Telstra.
Kevin10, never again!
Robert: "or the government just builds to NBN anyway"
It won't happen without Telstra, else Rudd will have to explain the $43b cost to the Australian taxpayer, who will most likely not be so receptive as the computer geeks.
Derek
Its already happening in Tassie without Telstra, using Aurora and Basslink, the alternative cable to Telstra, to the mainland!
They are actually up to stage 3.
Bit behind the times like your wonderful Telstra their Kevin10.
http://www.auroraenergy.com.au/NBN_Tasmania/#about-the-network
http://www.arnnet.com.au/article/337822/conroy_throws_another_100_million_into_tasmanian_nbn/?fp=2&fpid=1
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