Telstra decision may cause delay to NBN schedule
Telstra has postponed the shareholder vote that if passed, could see millions of their customers moved across to the National Broadband Network (NBN).
If the deal goes ahead, the carrier will close its ageing copper and cable networks, and it could mean the NBN will be rolled out much faster.
The self-imposed deadline was set for July 1st, where Telstra shareholders would vote on whether the $11 billion deal would be made with NBN Co. Telstra has insisted that negotiations with NBN Co were continuing smoothly, however the original timeframes were not reasonable given the meetings that would be necessary to have with other bodies such as the ACCC, as well as waiting for Government approval.
"Given this, we have now reached the point where a July 1 meeting is no longer practicable," Telstra said. "However the NBN negotiations continue to progress well, with all parties working together to agree and document the various detailed arrangements required to implement a transaction of this scale and complexity."
Industry experts predict the date could be pushed back to September or later. The delay follows concerns over the feasibility of the NBN as Telstra upgrades its network to 4G to boost speeds in both metro and regional areas. According to a CompareBroadband survey, customers felt the 4G network would not be a threat to the NBN.