[LINK] Telstra separation deal accepted

[Jan Whitaker]

Telstra clears way for NBN deal

Lucy Battersby
February 23, 2012 - 3:45PM

Telstra has lodged a revised structural separation undertaking with 
the competition watchdog - clearing the way for it to finalise its 
deal with NBN Co.

Chief executive David Thodey said the ''revised [undertaking] came 
after multiple rounds of public consultation and the Australian 
Competition and Consumer Commission had publicly indicated Telstra 
had adequately responded to the issues raised''.

This last comment is a reference to the ACCC's insistence that 
Telstra not oppose its plan to set a price cap on the amount it can 
charge competitors for wholesale broadband services.

"I am please the ACCC has acknowledged that their concerns have been 
addressed and I note their commitment to consider the [undertaking] 
promptly", Mr Thodey said.

Telstra said changes made to the undertaking since December last year 
were not material.

The ACCC had indicated it could approve the undertaking within weeks, 
meaning Telstra's deal with NBN Co could be finalised within weeks.

Telstra values the deal with NBN Co at $11 billion in today's money 
and has indicated it may use the funds to buy back shares.

Communications Minister Stephen Conroy said finalising the deal 
between Telstra and NBN Co would be a 'the leap forward that we need' 
on the roll out of the broadband network.

The ACCC confirmed it received the final draft.

"This further version addresses those drafting issues raised during 
the recent consultation process that were of concern to the ACCC," 
ACCC chairman Rod Sims said.
More at the link: 
http://www.theage.com.au/business/telstra-clears-way-for-nbn-deal-20120223-1tpsa.html 



Melbourne, Victoria, Australia
jwhit at janwhitaker.com
blog: http://janwhitaker.com/jansblog/
business: http://www.janwhitaker.com

Our truest response to the irrationality of the world is to paint or 
sing or write, for only in such response do we find truth.
~Madeline L'Engle, writer

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