Feeds

Telstra shareholders pass deal with Oz government

Vote defuses NBN “ticking package”

Build a business case: developing custom apps

Telstra shareholders have, with some quibbles from the floor, approved the proposed $AU11 billion deal between the carrier, the government, and NBN Co.

Under the deal, some aspects of which which are still being mulled by the Australian Competition and Consumer Commission, Telstra will receive $AU11 billion at net present value, in exchange for withdrawing services on its copper network as the fibre is rolled out, and migrating its customers connections to the NBN.

The arrangement also means NBN Co will be able to rent space in Telstra ducts for its fibre network – an arrangement widely misunderstood as representing “Telstra selling its network”.

Telstra CEO David Thodey told the meeting that many of the changes Telstra will experience were inevitable anyway: fixed network revenues are declining, as is the value of the copper network.

“The NBN will accelerate our need to migrate to this new world,” he said. “Our strategy is … to build intelligent networks, differentiated content, focus on applications, and introduce new tariff structures,” he told the annual general meeting.

Proxy votes alone were sufficient to carry the vote, at more than 99 percent, which represented more than 50 percent of the total shareholding.

The vote reduces by one the potential political headaches associated with the network: had shareholders rejected the deal, NBN Co would have found itself with a more expensive rollout, competing against Telstra’s incumbency. Telstra, on the other hand, would have been dragged into a capex war on a national scale.

The remaining hurdle for the deal – and for the structural separation of the telco – is regulatory approval by the ACCC. Both Thodey and CFO John Stanhope reiterated their belief, and the ACCC’s public statements, that the regulatory concerns can be addressed without a serious impact on the deal.

However, Stanhope promised a new shareholder vote should it be required.

At times, the AGM appeared to be treated as a political platform by shareholders, carrying such a consistent brief against the government as to make questions from the floor sound like a morning on right-wing talkback radio. Apparent political plants included the assertion that Australia is “a dictatorship”, that the government has given the NBN a “blank cheque”, and trying to maintain the myth that Telstra is selling its network to the NBN. ®

Build a business case: developing custom apps

More from The Register

next story
Just TWO climate committee MPs contradict IPCC: The two with SCIENCE degrees
'Greenhouse effect is real, but as for the rest of it ...'
Adam Afriyie MP: Smart meters are NOT so smart
Mega-costly gas 'n' 'leccy totting-up tech not worth it - Tory MP
'Blow it up': Plods pop round for chat with Commonwealth Games tweeter
You'd better not be talking about the council's housing plans
Arrr: Freetard-bothering Digital Economy Act tied up, thrown in the hold
Ministry of Fun confirms: Yes, we're busy doing nothing
ONE EMAIL costs mining company $300 MEEELION
Environmental activist walks free after hoax sent share price over a cliff
Help yourself to anyone's photos FOR FREE, suggests UK.gov
Copyright law reforms will keep m'learned friends busy
Apple smacked with privacy sueball over Location Services
Class action launched on behalf of 100 million iPhone owners
UK government officially adopts Open Document Format
Microsoft insurgency fails, earns snarky remark from UK digital services head
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.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.
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.
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.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.