Telstra
(ASX:TLS) could be sidelined by the Rudd Government after a new study into the proposed National Broadband Network found that the NBN could succeed without the Telco.
The government-commissioned study said that the proposed high-speed fiber Internet network is achievable and affordable with or without Telstra – which is the owner of the only existing national platform.
The study says the NBN network may cost up to $43 billion and take eight years to build, and that it may cost less if Telstra is involved.
The government has warned that it will penalize Telstra if it doesn’t agree to separate some of its operations as part of the NBN.
Legislation to help the split recently stalled in the Senate, as the opposition wanted to wait for the study to be released and for talks between NBN and Telstra to end.
The legislation is listed for debate on May the 12th, just ahead of the release of the May Budget.
Telstra says it will consider selling fixed-line assets to the NBN, in exchange for cash or an equity stake.
Telstra’s 2009 net profit increase from the year before to just over $4 billion.
