Telstra scraps massive Australian broadband plan

Telstra scrapped plans for a US$3.06 billion high-speed broadband network after reaching an impasse with regulators over how to charge rivals for access.

Telstra has scrapped plans for a $4 billion national high-speed broadband network after reaching an impasse with regulators over how to charge rivals for access.

It ended discussions with Australian regulators over a next generation fibre-to-the-node (FTTN) wireline network slated to cover Australia's five major cities initially before being expanded nationally.

Telstra had aimed to ensure it was not subsidising network access by rivals, but discussions broke down because regulators failed to understand the actual costs involved in building the network out to rural areas of the nation, it said in a statement.

"We are not going to engage in a new investment costing $4 billion that is just going to hopefully bring more revenues in on the IP side, but hasten the depletion of revenues that would otherwise be used to fund services to the bush," head of public policy and communications at Telstra, Phil Burgess, said.

Telstra would not invest in an FTTN broadband network until its costs are recognised and regulatory practices change, the company said.

In a statement, the Australian Competition and Consumer Commission said it was perplexed by Telstra's decision to unilaterally end discussions, and that it had agreed in principal that Telstra should be entitled to recover its actual costs from the investment. The regulator also said it asked the company last week to open its FTTN plan to public scrutiny, but it did not do so.

The decision to end discussions over the next generation network came just a month after Telstra CEO, Solomon Trujillo, threatened the move. At the time, he said Telstra wanted to guarantee its 1.6 million shareholders they would earn a competitive return on their investment in the company. The decision also comes just ahead of a planned government share sale of the company.

Join the newsletter!


Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Dan Nystedt

IDG News Service
Show Comments

Brand Post

Most Popular Reviews

Latest Articles


PCW Evaluation Team

Luke Hill


I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Laura Johnston

MSI GS65 Stealth Thin

If you can afford the price tag, it is well worth the money. It out performs any other laptop I have tried for gaming, and the transportable design and incredible display also make it ideal for work.

Andrew Teoh

Brother MFC-L9570CDW Multifunction Printer

Touch screen visibility and operation was great and easy to navigate. Each menu and sub-menu was in an understandable order and category

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Featured Content

Product Launch Showcase

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?