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Analsys & Opinion The Right Angle Has competitors' FTTN plan stalled Telstra sale process?
Analsys & Opinion The Right Angle Has competitors' FTTN plan stalled Telstra sale process? | Has competitors' FTTN plan stalled Telstra sale process? |
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| by Stuart Corner | |
| Monday, 01 May 2006 | |
  
See also: Telstra rivals call for jointly-funded FTTN network Telstra slams rivals' plan for joint FTTN network Telstra announced plans for its FTTN network last November but told the Australian Stock Exchange in December that it would not proceed with the project unless it gained exemption from a requirement to offer access to its competitors at regulated prices. The Government initially adopted a hard line approach, but in mid April, communications minister, Helen Coonan, was reported to have told prime minister, John Howard, that a breakthrough had been achieved and that she believed that it would be possible to finalise outstanding issues enabling the Government to make a decision on its planned share sale on May 8, the day before the federal budget is due to be handed down. However finance minister, Nick Minchin, has now played down the chances of a May 8 decision saying: "We have the question of the appropriate regulatory environment for Telstra's plans for a fibre-to-the-node network, which are ongoing and would influence the question of whether we can proceed to a sale this year." He said that regulatory uncertainty may push the decision beyond the May 9 federal budget. He gave no indication of what, if anything, had changed to dampen Coonan's supposed confidence of just two weeks ago. However, on April 21 an unlikely combination of seven of Telstra's largest carrier competitors, lead by number two carrier, Optus, suggested the building of a jointly-owned FTTN network to which access would be available to any carrier at the same rates. The group spelt out a number of different ways of doing this, including the sale of Telstra's existing access network to a separate company, but gave few details. Any half serious consideration of the proposal would be a lengthy process and would make a decision on the sale impossible. However, the current uncertainty could mean that it's very existence is being used as a bargaining chip to try and wrest some last minute concessions from Telstra in the current access negotiations. {moscomment} |
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