MELBOURNE (Reuters) – Australia’s dominant phone company, Telstra Corp, will be $5 billion better off working with the government’s new high-speed broadband network than competing against it, an independent expert said, paving the way for shareholder approval.
Telstra released the advice to shareholders ahead of a vote on October 18 on its plan to hand over its fixed-line assets to the government’s $38 billion network, a cornerstone of one of the nation’s biggest telecoms reforms.
“Overall, the advantages of the proposal outweigh the disadvantages. Accordingly, in Grant Samuel’s opinion, the proposal is in the best interests of Telstra and its shareholders,” independent expert Grant Samuel said.
The only alternative for Telstra would be to compete against the $38 billion network, which would require the firm to step up investment in its own networks and face losing access to new digital spectrum, as threatened by the government.
The endorsement came two days after Australia’s competition
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