Election delayed legal grounds for Telstra, NBN deal
The Federal government admits that the August 21 elections delayed the legal work between telecommunications' giant Telstra Corporation Limited (ASX: TLS) and the National Broadband Network (NBN) Company.
Broadband Minister Stephen Conroy said, “There has been about an eight-week delay due to the election campaign and the uncertainty after.” The senator hopes, though, Telstra will sign a long-form agreement before its annual general meeting in before December.
Future Fund chairman David Murray said they are not aware about the details of the $11 billion agreement between the NBN Company and Telstra in June. Murray said, “We don't know what the terms of the agreement are.” The funding company has a large holding in Telstra.
Conroy expects Telstra shareholders to be informed about the details of the broadband deal. He said, “Telstra have already indicated they will circulate, as required by the corporations law, all of the material to their shareholders to allow them to make an informed decision and vote in February, March, April next year.”
Under the original terms, Telstra will allow the NBN Company access to its infrastructure, close down its copper network, and transfer customers to the new fibre network for $9 billion. Conroy insisted the funding will not be changed due to a forced rollout in the rural areas.
He said, “The analysts are all basing their assessments on a rollout that was in their minds entirely focused on the metro areas.” Country independent MPs Rob Oakeshott and Tony Windsor wanted the regional areas to be on the first part of the rollout list as part of a support package for a Labor vote.