Singtel Optus refuses to decide on NBN until rival Telstra confirms its game plan.
The Telstra NBN deal which is rumoured to be announced publicly later this week, will see the terms under which the Telco agrees to sell off its fibre network and other possible broadband contracts made available to it from the National Broadband Network, following the sale.
It will also decide how Australia’s largest Telco will gain financially, which in terms of cash flow could put it in a far superior place than rivals, although Telstra are said to be keen to see its biggest competitor jump on the NBN train sooner rather than later to create a level playing field.
Getting Optus on-board is also said to be important to the NBN both financially and in terms of garnering support from the wider Telco community and other critics of the long awaited plan, according to the Australian Financial Review.
The big question to be decided is whether Australia’s second largest Telco will keep its own network, which analysts say could hamper the NBN’s business model considering the Telco’s already large consumer base.
Optus said yesterday it would hold off until Telstra’s NBN strategy is announced.
This is in spite of talks Optus were said to have had with the NBN last October over its HFC network, although no definite outcome was reached.
Telstra, who are to announce its 2010 interm financial results this Thursday, could see the company confirm its NBN strategy.
Optus has around 1.6 million customers between Sydney, Melbourne and Brisbane.
The Future Fund superannuation manager – Telstra’s largest shareholder – reduced its stake in the company yesterday to 6.76% from 7.8% following the NBN rumours.