TLS 0.28% $3.62 telstra group limited

stouse with regulator affect tls sp?

  1. 253 Posts.
    Could problems with the regulator over wholesale pricing adversely affect TLS?

    Last week at the World Mobile Conference in Barcelona, Mr Thodey told BusinessDay.
    ''We are writing a contract with NBN Co and we have got all the commercial terms of reference done [and] we are working it out with the government,'' ''We are dealing with the Australian Competition and Consumer Commission about what the regulatory environment will be through the next eight years.''

    One potential interruption to this $11 billion deal is the regulator's review of fixed-line pricing principles, which is due within days.'

    The ACCC's draft report recommended reducing wholesale line rental prices. This would give NBN Co an opportunity to argue for a lower price.

    But Mr Thodey said this would be unacceptable. ''It may change the formula of what we think is due consideration for us in doing the NBN deal,'' he said.

    ''We have made that a condition precedent in terms of the deal with NBN Co and the government. So we would have to sit down and talk about how we handle that.
    I am a little bit agnostic about how the value is created, but if I can't get the value then I can't recommend something to shareholders.

    So if the ACCC did change pricing then I have to find value some other way, I can't go to shareholders unless the deal stands up.''

 
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