Feeds

Telstra cans cable network in regulatory spat

Doubt cast on sell-off

Boost IT visibility and business value

Telstra has confirmed investor fears and announced its talks with Aussie regulators, aimed at paving the way for a AUS$3.1bn (£1.2bn) high speed fibre network, have collapsed.

A statement from the telco said:

The major stumbling block was the ACCC’s unwillingness to recognise the actual costs that Telstra incurs in providing its services and, especially, the costs it incurs in providing services to rural, regional, and remote Australia. Until Telstra’s actual costs are recognised and the ACCC's regulatory practices change, Telstra will not invest in a fibre-to-the-node broadband network.

Read the rest of the statement (.pdf) here.

The Australian Competition and Consumer Commission said it was "perplexed" by the decision. Chairman Greame Samuel said: "The ACCC notes that the calculations which Telstra has provided, to date, on the costs of services on its existing network have been based not on its actual costs or its regulatory accounts, but on Telstra's own highly contentious economic model." Their statement is here.

A deal was viewed as key to Telstra's attractiveness to potential buyers of the Australian government's remaining 51.8 per cent stake. As we reported in April, investors were already getting twitchy about the talks, with Telstra shares at an all-time low. They fell again on today's announcement.

The failure to reach a deal leaves Australia with no plan to replace its aged national copper network.

ABC News reports that opposition communications spokesman Stephen Conroy described the news as "an absolute disaster".

Communications Minister Helen Coonan responded: "What we'll do is we'll have a look at it and see what the situation is. I think this is an opportunity for us all now to take stock and to let other competitors have a look at what they can do." ®

Seven Steps to Software Security

More from The Register

next story
Scotland's BIG question: Will independence cost me my broadband?
They can take our lives, but they'll never take our SPECTRUM
Bring back error correction, say Danish 'net boffins
We don't need no steenkin' TCP/IP retransmission and the congestion it causes
Auntie remains MYSTIFIED by that weekend BBC iPlayer and website outage
Still doing 'forensics' on the caching layer – Beeb digi wonk
NBN Co adds apartments to FTTP rollout
Commercial trial locations to go live in September
Samsung Z Tizen OS mobe is post-phoned – this time for good?
Russian launch for Sammy's non-droid knocked back
Telstra to KILL 2G network by end of 2016
GSM now stands for Grave-Seeking-Mobile network
Seeking LTE expert to insert small cells into BT customers' places
Is this the first step to a FON-a-like 4G network?
What FTC lawsuit? T-Mobile US touts 10GB, $100 family-of-4 plan
Folks 'could use that money for more important things' says CEO Legere
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Securing Web Applications Made Simple and Scalable
Learn how automated security testing can provide a simple and scalable way to protect your web applications.