Shares in top telco Telstra Corporation Ltd
(ASX:TLS) have fallen to an all-time low of $2.88 today amid uncertainty surrounding the National Broadband Network’s operation and the impact on the Telecommunications industry in Australia.
Yesterday the telco sent a letter to shareholders expressing its concern that draft legislation released by the government would allow the national broadband network to become a government funded retailer, not just a wholesale network provider.
Such an outcome, it says, 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 is also unhappy that the draft legislation gives unprecedented and largely unconstrained power to the Australian Competition and Consumer Commission and the Communications Minister.
The Government says it is considering Telstra’s views with the Senate due to debate the planned regulatory reforms later this month.
Telstra reported net profit of $4 billion in the 12 months to June 30, 2009.
