[LINK] Way open for one-off payment to Telstra
David Boxall
david.boxall at hunterlink.net.au
Mon May 10 12:00:18 AEST 2010
I guess, if it's cheaper than rebuilding the CAN from scratch ...
<http://www.smh.com.au/business/way-open-for-oneoff-payment-to-telstra-20100509-ulq7.html>
THE federal government may yet make a special payment to Telstra
separate from any deal the company reaches with the national broadband
network, the Communications Minister, Stephen Conroy, has indicated.
Telstra is in negotiations with the government's NBN Co over a sale of
the telco giant's fixed-line infrastructure, but Senator Conroy
yesterday revealed on ABC1's Inside Business that there were parallel
discussions between the Telstra and the government.
While he declined to comment on the detail of those separate
discussions, citing their commercial sensitivity, he said topics
included legislation to pressure the telco into splitting its retail and
wholesale arms and boosting competition in the sector, as well as a
draft bill limiting NBN Co's ability to provide retail services.
He also indicated it was possible those negotiations could involve
government payments to the company. Asked if all payments to Telstra
would be from NBN Co rather than the government itself, Senator Conroy
refused to provide an assurance, noting ''it goes to the heart of some
of the negotiations''.
The separate discussions could point to a way through the apparent
impasse between NBN Co and Telstra. Negotiations have been under way
since December and, while both parties remain tight-lipped, the
disagreement reportedly centres on differing estimates of the value of
Telstra's network.
The additional payment could bridge the gap between the two valuations.
A payment would also have political benefits for the government. It
would protect NBN Co's balance sheet, boosting the project's financial
prospects and increasing the likelihood that it achieves returns of 6 to
7 per cent identified by the implementation study released last week.
It would also help to placate angry Telstra shareholders, many of whom
fear that the company is being dudded by the government.
The implementation study found the network could be built for less than
$43 billion without a deal with Telstra, but that the price tag would
come down significantly if an agreement was reached.
One industry source speculated yesterday that an additional payment
could be made as part of an industry restructure, similar to
compensation paid to farmers as part of water reform. The source also
suggested that more generous payments to Telstra for fulfilling its
universal service obligation on pay phones were possible.
The shadow treasurer, Joe Hockey, yesterday renewed the Opposition's
attack on the broadband plan, describing it as a ''technology punt''
likely to produce a ''world of hurt'' and have implementation issues.
--
David Boxall | Dogs look up to us
| And cats look down on us
http://david.boxall.id.au | But pigs treat us as equals
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