NBN deal is a great deal, for Telstra

Stuart Corner
Monday, 21 June 2010 12:15

Opinion and Analysis

Not surprisingly opinion on the merits, for Telstra, of its heads of agreement with NBN Co span the gamut from disastrous and stupid, for Telstra, to disastrous and stupid for the Government, Telstra's competitors and just about everybody else. However there is noone better placed to exploit the NBN than Telstra.

My colleague Renai LeMay, was unequivocal, describing it as "the most disastrous decision [Telstra] has ever made in the telco's long and tortured history in Australia's telecommunications sector."

Outspoken commentator, Kevin Morgan, was equally certain that the deal represented a monumental win for Telstra. "Thank God that David and Catherine took over from those hard nuts Sol and Don!," he said. "If this is the deal the team who didn't want to confront the Federal Government could win, I'd hate to think how much Sol and Don could have extracted."

The people who really matter - Telstra's competitors - were much more measured and generally supportive. Optus' director of corporate and government affairs, Maha Krishnapillai, said: "Optus cautiously welcomes today's announcement as a potential step in the right direction. However it is important to note that a number of key details are still to be finalised."

He stressed that: "rollout of the NBN is not just about building the network, it's vitally important that it goes hand-in-hand with reform of our sector'¦It's more important than ever that the Regulatory Reform Bill is passed quickly as this legislation contains fundamental and crucial protection for the taxpayers of Australia by ensuring any Telstra deal represents demonstrably fair value for taxpayers and is open to ACCC oversight."

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