Telstra issues NBN Co and government negotiations update

A "significant gap" remains on an each party's idea of an acceptable financial outcome

Telstra (ASX:TLS) has issued a market update on its negotiations with the Government and NBN Co over the NBN, stating that it believes there to be a significant gap between Telstra and NBN Co on what each party believed to be an acceptable financial outcomes.

“There are also a range of commercial matters that are yet to be agreed,” the statement reads. “In addition Telstra is discussion ways in which the gap can be bridged recognising the Government has highlighted the national interest benefits of the NBN platform of the telecommunications industry.

“Further, as Telstra has stated in its submission to Government, a range of legislative changes and regulatory approvals will be needed for an agreement to be implemented.”

The company added that it remained engaged in the negotiations with both the NBN Co and Government as was approaching them on a “business-to-business” basis.

In February Telstra CEO David Thodey flagged the difficulty in NBN Co and separation negotiations saying that an agreement could be months off.

The statement has been criticised by the Competitive Carrier’s Coalition, the association which represents the non-dominant carriers in Australia.

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