TELSTRA SAYS WILL SELL ASSETS TO AUSTRALIAN GOVT'S NBN FOR FAIR VALUE

Tue. October 27, 2009; Posted: 10:21 PM

SYDNEY, Oct 28, 2009 (AsiaPulse via COMTEX) -- TLSYY | Quote | Chart | News | PowerRating -- Telstra Corporation Ltd (ASX:TLS) says it is open to selling assets to the Australian government's national broadband network but it needs a guarantee on returns.

Chief financial officer John Stanhope told an institutional investor briefing that Telstra could sell fixed-line assets to the NBN Company, but shareholders would want a guarantee of a return on such a transaction.

"Our shareholders would rightly not be happy if we vended some assets for equity where there is doubt on the value of that equity or where there is any doubts of any returns on that equity," he said.

"But we would consider vending assets for an appropriate consideration of cash that's fair value, or even equity if there is some form of guarantee on return."

Chief executive David Thodey said the telco was still in constructive negotiations with the government on the implementation of the NBN, and proposed regulatory reforms of the telco sector.

The federal government's proposals would see Telstra's wholesale and retail businesses separated - either voluntarily or by force - with the aim of creating a more level market for telecom services ahead of the rollout of the NBN.

Mr Thodey reiterated Telstra's opposition to the current form of the reforms, and the "aggressive timetable" outlined for the legislation's passage through parliament.

Telstra has called for a delay on debate on the bill until its negotiations with the government are completed.

(AAP) bl

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