In the aftermath of the Government’s decision last week, Telstra’s immediate task will be to rethink its investment in cable after it emerged that regulatory changes could include forcing the telco to divest the network which passes 2.5 million homes and businesses.
Wow. Just wow.
Should the Government decide to force Telstra to divest the cable network, Merrill Lynch said it could be folded into the proposed national broadband network, which would mean that fibre-optic cables would not have to be rolled out to many homes and businesses in the cities.
The broker said the new company proposed by the Government to run the national network was the “only logical buyer” of Telstra’s city cable network.