Telstra fails to meet NBN deal vote date

Telstra fails to meet NBN deal vote date

Summary: Telstra has announced that its $11 billion deal with the National Broadband Network Company won't be finalised in time for its shareholders to vote on by the 1 July deadline.

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update Telstra has announced that its $11 billion deal with the National Broadband Network Company won't be finalised in time for its shareholders to vote on by the 1 July deadline.

The negotiations for the deal that would see Telstra decommission its copper network, provide NBN Co access to its ducts and pipes and move customers onto the NBN have been ongoing for several months. At Telstra's half-year results in February, the company said it had agreed on provisional commercial terms for the deal and laid down 1 July as the date for the company's shareholders to vote on whether the deal would be accepted.

The telco has, however, today announced to the Australian Stock Exchange that, due to the required time frames for ministerial processes, Australian Competition and Consumer Commission processes and Telstra's extraordinary general meeting processes, the 1 July deadline is "no longer practicable".

Telstra could not set down a new deadline but said it would inform shareholders of an alternate date once it had been decided.

NBN Co said in a statement that the change in deadline would not impact the construction at first release sites, due to be completed in April. However, the government-owned company advised that it would be taken into account in determining timing for the second release sites.

Updated at 12:47pm, 18 March 2011: comment from NBN Co added.

Topics: Government, Broadband, Government AU, Telcos, Telstra, NBN

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Armed with a degree in Computer Science and a Masters in Journalism, Josh keeps a close eye on the telecommunications industry, the National Broadband Network, and all the goings on in government IT.

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6 comments
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  • That's OK.

    Telstra will get let off the hook again, just like before with the NBN tender. Rules only apply to other Telcos and not the big T
    epaslv
    • @epaslv
      1. What 'rules' apply to the other Telco's and not Telstra?

      2. What 'hook' did Telstra get let off regarding the NBN tender?
      advocate-d95d7
  • One gets the impression that Telstra are trying to have a foot in both camps. One one side they are trying to out last the current precarious government and failing that, they'll take their 11 billion.
    mwil19-a34f7
  • I doubt if this is anything other than a short delay.

    If anything, it’s probably by Telstra design to get the government to hurry along a bit quicker. Given the government’s keenness to move on with this, it’ll probably be a sufficient kick in the pants.
    mwyres
  • I doubt that most observers understand the enormous complexities of the proposed agreement between NBN Co., Government and Telstra.

    Telstra must guarantee that all written agreements will be without challenge and in the best interests of Telstra shareholders. The ACCC requirements must be closely examined and if satisfactory, accepted. The proposed financial considerations for the proposed agreement must be delivered from independent experts and agreed. The proposal that the NBN Co will be Wholesale only is critical and any move by the NBN Co into Retail must be resisted.

    It is without doubt that both Telstra and Senator Conroy are desirous of an early agreement, as the very existence of the NBN depends on it being operational, and I would expect the Senator would be using his considerable influence to expedite the agreement.
    sydneyla
  • Any delay by Telstra is to Telstra's advantage, because in the meantime they just keep signing up more and more punters to BigPond, fixed line and especially NextG wireless.

    The Telco's with the biggest customer bases pre NBN will still be the biggest Telco's post NBN.

    If ISP's think it hard poaching customers from BigPond and Optus in the current ADSL HFC and wireless package environment, they ain't seen nothing yet with the advent of the Optus and BigPond FTTH/Wireless/Mobile/PayTV/Movie/IPTV package.
    advocate-d95d7