Feeds

Telstra shareholders pass deal with Oz government

Vote defuses NBN “ticking package”

Secure remote control for conventional and virtual desktops

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. ®

Intelligent flash storage arrays

More from The Register

next story
Scrapping the Human Rights Act: What about privacy and freedom of expression?
Justice minister's attack to destroy ability to challenge state
WHY did Sunday Mirror stoop to slurping selfies for smut sting?
Tabloid splashes, MP resigns - but there's a BIG copyright issue here
Hey Brit taxpayers. You just spent £4m on Central London ‘innovation playground’
Catapult me a Mojito, I feel an Digital Innovation coming on
Google hits back at 'Dear Rupert' over search dominance claims
Choc Factory sniffs: 'We're not pirate-lovers - also, you publish The Sun'
EU to accuse Ireland of giving Apple an overly peachy tax deal – report
Probe expected to say single-digit rate was unlawful
Inequality increasing? BOLLOCKS! You heard me: 'Screw the 1%'
There's morality and then there's economics ...
While you queued for an iPhone 6, Apple's Cook sold shares worth $35m
Right before the stock took a 3.8% dive amid bent and broken mobe drama
EU probes Google’s Android omerta again: Talk now, or else
Spill those Android secrets, or we’ll fine you
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
The next step in data security
With recent increased privacy concerns and computers becoming more powerful, the chance of hackers being able to crack smaller-sized RSA keys increases.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.