In an update to shareholders on the National Broadband Network top Telco Telstra Corporation Ltd
(ASX:TLS) has expressed its concern about the governments draft legislation that would govern how the NBN operated.
Telstra says the draft legislation raises for the first time the prospect of the NBN Company becoming a Government funded retailer, not just a wholesale network provider.
The Telco says such an outcome would run counter to the core purpose of the NBN and the Government’s primary policy objective of restructuring the industry to have separate providers for retail and wholesale fixed network services.
Telstra says it is very concerned about this potential change in the Government’s position.
If enacted, Telstra says it will need to factor this into the financial consideration required to achieve an agreement that is in the company’s and shareholders best interests. Telstra earned $4.07 billion in fiscal 09.
