razorack,The devil in the HOE maybe in the detail, the fine...

razorack,

The devil in the HOE maybe in the detail, the fine print..

On the surface the $11 biil deal seems fair for TLS and it's shareholders.. It pockets continuing cash flows over a long period of time, save Billions on maintenance costs of the old copper network and, it would appear, releases TLS from very costly regulatory requirements.. All the risk transfers to the Government.. Freeing TLS to go and knock the socks off it's competitors, as everyone will be operating on the same regulatory playing field..

Also, you would think, releases some of the free cash flow for a sizeable cash payment to shareholders..

I believe that with this non-binding agreement Telstra has placed itself in a win-win situation short/med term, not having to make a final decision until after the election.. If Rudds wins and all being equal, they take the money and run.. If the Liberals are to win, I would imagine that they would offer Telstra a better deal.. An offer they cannot refuse, so to speak.. Either way, we shareholders win..

I personally do not believe that any Government should be building the NBN with Taxpayer funds.. I have maintained all along that this should have been left to private industry, with appropriate regulation.. However, if it is to be forced upon us, as a TLS holder $11 billion is a good start..

BTW, did anybody notice that some very important Chinese diplomats were at Tesltra headquarters at the week end..
Is this a fore runner to a major move into China's telco sector?? OR KR in disguise??