Telstra to lodge revised SSU 'shortly' & no 'material changes'

Stuart Corner
Monday, 05 December 2011 08:06

IT Policy - Regulation

Following press reports that the ACCC will be unable to reach a decision on Telstra's structural separation undertaking by the 20 December deadline, both parties have expressed confidence that this timeframe will be met.

The Australian Financial Review reported on Friday 2 December that the ACCC had received "unexpected legal advice" as a result of which the 20 December deadline for acceptance of the SSU by the ACCC would "almost certainly" not be met.

The 20 December date is enshrined in Telstra's Definitive Agreement with NBN Co. If it is not met and no other action is taken the whole deal becomes null and void.

However, Telstra says there is no issue about changing the date. In response to the AFR's article Telstra issued a statement to the ASX saying: "As stated in the explanatory memorandum issued to shareholders on the NBN transaction, the end date of the definitive agreements can be changed by agreement between Telstra and NBN Co."

It added: Telstra is currently considering the time needed to complete the conditions precedent. Should an extension to the end date be required to provide the ACCC time to conclude its consideration of the SSU, then Telstra will communicate it to shareholders when such an agreement is reached with NBN Co."

The announcement went on to say that Telstra expected to submit a revised SSU 'shortly' and that "While the changes to the SSU are important, they do not constitute material change in the context of the transaction recently approved by Telstra shareholders."

The ACCC also issued a statement in response to the AFR's article saying it did not consider the remaining issues under discussion to be insurmountable. "The ACCC continues to have constructive discussions with Telstra in relation to a revised structural separation undertaking and the issues under discussion have narrowed considerably," it said.