Telstra threatens to scrap $2.2b broadband network
Telstra chief, Sol Trujillo, has threatened to scrap an $3 billion national high-speed, fixed-line broadband network.
The telco had proposed to build a next generation fiber-to-the-node (FTTN) wireline network to cover the five major cities initially, then extend it to smaller towns later. But government regulations could require it to allow its rivals to use the network free or at low rates, something the company won't stand for.
"We will not invest in FTTN unless we achieve regulatory settings that will permit Telstra's 1.6 million shareholders to earn a competitive return that they expect and they deserve," Trujillo said in a speech to the National Press Club in Canberra.
The company used to be Australia's national carrier, but has been undergoing a long privatisation process. It is supposed to sell more than 6 billion shares to investors later this year in a public offering valued at around $24 billion.
