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

Shining a light on creativity

MSI has long pushed the boundaries of invention with its ever-evolving range of laptops but it has now pulled off a world first with the new MSI Creative 17.

Most Popular Reviews

Latest Articles


PCW Evaluation Team

Tom Pope

Dynabook Portégé X30L-G

Ultimately this laptop has achieved everything I would hope for in a laptop for work, while fitting that into a form factor and weight that is remarkable.

Tom Sellers


This smart laptop was enjoyable to use and great to work on – creating content was super simple.

Lolita Wang


It really doesn’t get more “gaming laptop” than this.

Jack Jeffries


As the Maserati or BMW of laptops, it would fit perfectly in the hands of a professional needing firepower under the hood, sophistication and class on the surface, and gaming prowess (sports mode if you will) in between.

Taylor Carr


The MSI PS63 is an amazing laptop and I would definitely consider buying one in the future.

Christopher Low

Brother RJ-4230B

This small mobile printer is exactly what I need for invoicing and other jobs such as sending fellow tradesman details or step-by-step instructions that I can easily print off from my phone or the Web.

Featured Content

Product Launch Showcase

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?