Aussie telecom company on the verge of separation Created: 11/29/2010 4:26:27 PMWith Australia’s National Broadband Network on its way, Australian telecommunications company Telstra is set to separate. Recent legislation passed in Australia’s Lower House of Parliament approved the split of Telstra’s retail, wholesale and operations businesses.
According to the Herald Sun, Telstra Chief David Thodey yesterday said the passage of the bill established “the legislative framework for agreements with the government and NBN that would provide after-tax value of approximately $11 billion for our shareholders.”
NBN aims to gain control of Australia’s hybrid fiber-optic and
coaxial cable networks. In addition to breaking apart, Telstra also sold NBN its copper wire network for $11 billion.
“We look forward to the government progressing its remaining legislation on NBN Co, fiber in greenfields estates and reform of the universal service obligation,” said Thodey.
Telstra’s stock recently hit a record low of $2.55, although it has since jumped to $2.88.
The deal between NBN and Telstra has faced significant scrutiny from watchdog groups who claim the deal gives too much power to the government-run NBN.
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