NBN Co not fazed by Telstra vote delay

Stan Beer
Friday, 18 March 2011 11:51

IT Policy - Government Tech Policy

National Broadband Network provider, NBN Co, has moved to allay fears that an announced delay of Telstra's extraordinary general meeting to put a vote to shareholders on selling the company's network for $11 billion could put the brakes on the NBN rollout.

This morning Telstra announced that the EGM would no longer take place on 1 July, citing ongoing finalisation of matters involving the Government. The date for the EGM has been postponed to an unspecified date, with Telstra saying that meeting the 1 July schedule would no longer be possible.

NBN Co needs access to Telstra's fixed line infrastructure as soon as possible, so that the broadband provider can lay fibre in the ground using the pre-existing Telstra ducts.

Within hours of the Telstra announcement, NBN Co issued its own release seeking to stress that relations between Telstra and NBN Co with regard to the $11 billion agreement had not changed.

"NBN Co today confirmed that negotiations with Telstra on the definitive agreement are progressing well and that both sides are working through the complex detail of the final negotiation and documentation process," the NBN Co statement read.

"A definitive agreement will give NBN Co access to Telstra's infrastructure, including important pit, pipe and conduit that will allow more of the rollout to progress underground."

The NBN Co statement stressed that the delay in the Telstra shareholder meeting would not impact the NBN rollout.

"The deal is not impacting progress in NBN Co's First Release Sites, which are nearing the completion of their construction phase," the statement read.

NBN Co CEO Mike Quigley also sought to downplay any perceived issues with the Telstra delay, saying: 'A definitive agreement between Telstra and NBN Co will be good for Telstra, good for NBN Co and good for the country. It is therefore worthwhile taking the time to get the right outcome.

'A deal will lead to less disruption for the community, and reduce our rollout costs. It is better for the community and better for taxpayers'.

NBN Co has been advising communities with Second Release Sites that both the Telstra deal and the ACCC decision on points of interconnect are now being factored into the timing of future rollouts.