The ACCC wants TLS to charge $13 for access to the copper network. TLS wants $30
They say if they don't get this they will have difficulty maintaining their dividend.
Yesterday there was an "unfounded" rumour that they would get $26 and the stock went up 3%.
This rumour is not "unfounded".
In order to build the new fibre network, TLS is hoping to fund in from retained earnings coming from the old copper network.
Just think what will happen, if they don't get $26
No new network...reduced divi....no sale....down goes the shareprice.
The Future Fund will be a joke made up primarily one stock and a badly performing stock at that.
Do you think the government wants to sell the stock and get a good price for it.
Do you think they will allow TLS to not get $26 at least.
They need TLS to build this fibre network...
It is the key to everything.
They will do what they can to get it going.
That rumour is not "unfounded". The Government can't afford to be seen to be biased when dealing with the ACCC.
But they need TLS to build this fibre network otherwise all the plans re future fund and full privatising TLS will amoubt to naught. They will be biased toward TLS for sure. Wait and see.
They have to be.
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