Telstra Shareholders Pass $11B NBN Deal
Shareholders of Telstra have approved the $11 billion deal with the Australian government, allowing Telstra's fixed-line dominance be used by the National Broadcast Network Co.
In Sydney Tuesday morning, some 99.09 percent of proxy votes were in favour of the deal; retail shareholders are handing in ballots, with a count on their vote expected within hours.
Under the deal, Telstra will progressively decommission its copper-based network and let NBN access its pits, manholes and exchanges, and sell some infrastructure. In return, Telstra will receive $11 billion from the federal government, with the financial benefits to come over 30 years.
The $36 billion national high-speed Internet network, Australia's largest infrastructure project, aims to connect 93 percent of the country's homes and businesses to optic-fibre. NBN plans to begin construction in 28 locations nationwide, under a newly released 12-month plan for the high-speed broadband network.
NBN Project: Promise of Better Access
Consumers are given better access to lower-priced internet service, according to Minister for Broadband, Communications and the Digital Economy, Sen. Stephen Conroy, citing one of the key benefits of the NBN network.
In an e-mailed statement, Conroy welcomed further news that competition by Internet retail service providers was benefiting NBN customers.
Conroy cited Exetel's announcement on Tuesday of its entry level price of $34.50 was almost half that released by Internode last week and even lower than the sub-$40 package mooted by budget provider Dodo last Friday.
"As each day passes we are seeing competition in the retail NBN access market drive prices lower. This is great news for Internet consumers," Conroy said. "It is now time for Tony Abbott and Malcolm Turnbull to stand up and admit they have been deliberately misleading the Australian public about the NBN."
He said he was looking forward to even more pricing announcements by retail service providers over coming weeks.
Conroy added that consumers needed to be wary of misleading media reports which were not accurately comparing the details of NBN access pricing packages.
"In many cases it is extremely difficult to make a proper comparison of packages because the speeds actually being delivered by Internet service providers currently using today's aging copper infrastructure are often well below what they are advertised to be," he said.
"Another thing consumers should be aware of is that some media reports are not including line rental when they quote current internet plan prices, which is approximately $30 on top of the plan cost.
"The NBN is creating a network that will cater to the future needs of Australia, a network that will end the digital divide between metropolitan and regional Australia and one that will make Australia a world-leading digital economy."