Conroy defends the "real" Telstra-NBN Co deal

By Ry Crozier on Jun 22, 2010 3:27 PM
Filed under Telco/ISP

Opposition plays the numbers game.

Communications Minister Stephen Conroy has attacked Opposition senators over their criticism of the $11 billion Telstra-NBN Co agreement announced on Sunday.

In question time today, Conroy singled out West Australian Liberal senator Mathias Cormann over comments he made labeling the financial heads of agreement firstly as a "so-called deal" and subsequently that it did not exist.

"There is no deal," Cormann alleged, after Conroy reiterated guidance from Telstra that further work was needed before a definitive agreement could be reached.

"Yesterday in this place Senator Cormann claimed this wasn't a real agreement," Conroy told the Senate today.

"This is an outrageous claim without basis for credibility.

"The Government, Telstra and NBN Co made it abundantly clear this was a financial head of agreement."

Cormann later told parliament he had been "misunderstood or misquoted" by Conroy.

Conroy paraphrased quotes from Telstra chief executive David Thodey and iiNet chief Michael Malone he believed supported the Government's position on the status of the agreement.

He then attacked the Coalition over their continued opposition to the National Broadband Network.

"The Rudd Government has a clear plan for Australia's broadband future that now has widespread support across the industry," Conroy said.

"On the other hand, the Opposition said they will shut down the NBN.

"The Opposition's continued failure to understand broadband would wreak havoc with Australia's economic future."

Conroy also faced repeated challenges by South Australian Liberal Senator Simon Birmingham to quantify how much faster and more cheaply the NBN could be rolled out using Telstra's passive infrastructure, and how much greater a portion of the NBN could be deployed underground as a result of the agreement.

Conroy's responses on both occasions failed to appease the Opposition, who unsuccessfully sought orders from the Senate President John Hogg on how to answer the question.

"If there's any extra information, I will seek that from NBN Co and get back to you," Conroy said.

Conroy defends the "real" Telstra-NBN Co deal

5 comments in this discussion

"Fer chrissake stop laughin', Rhino, this is serious. Well, it is if you can take Conboy seriously on anything."

By anonymous

Tags

telstra, nbnco, agreement, conroy, national, broadband, network, senate

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Comments: 5

noelpeters Jun 22, 2010 5:20 PM	The share price tells the story. 330 million shares traded since the deal was announced and the price is virtually the same as it was before the "deal". Conroy and NBN are a joke.
peterh_oz Jun 23, 2010 12:07 AM	Doesn't the lack of share price movement actually prove that the govt, NBN and LTE threats are NOT to blame for the low share price? Maybe its because: 1. their (Telstra's) cash cow, fixed line services, are dwindling due to naked ADSL, VoIP and mobiles 2. their prices until recently are too high to compete 3. their market share is falling across everything except mobiles 4. their previous CEO put the company back about 15 years, apart from the mobile phone network, by turning the public's (customer's!) view on them from apathy to extreme dislike
adavion Jun 23, 2010 9:21 AM	First off, a HoA is an agreement to agree and is therefore not legally binding. The non-binding nature of the agreement was expressly noted in Telstra's statement to the ASX. Lying on one of those is a criminal offence- s1021D of the Corporations Act. So either the Senator Cormann is right or Telstra needs to be investigated for Ch7 CA Market Misconduct offences (and of course so too does Senator Conroy under as a co-conspirator to commit securities fraud) But arguably Senator Conroy needs to be investigated anyway because his remarks that the transaction is actually binding (if it is not) could argubly be construed as creating a false market - i.e. it is illegal to spread price sensitive rumours and lies about listed companies... Secondly the lack of a shareprice movement cannot prove or disprove the effects of the NBN's previous announcements. If you want to see the effects of the NBN on Telstra look at the >3% price deltas timed on announcements. This is because as Internode's Simon Hackett, Senator Cormann, Senator Conroy and Telstra have all acknowledged the absence of deal like characteristics - i.e. the absence of a deal full stop! Finally, Senator Conroy, Telstra and Co are now "assisting ASIC in their inquiries" relating to illegal insider trading so you can't use this week's shareprice movements as a barometer of the effects of the deal. It was a press release not a deal - Hackett; its non-binding - Telstra; the details are still to be negotiated - Conroy; There is no deal - Cormann
Rhino Jun 23, 2010 2:30 PM	Stephen Says "The Opposition's continued failure to understand broadband would wreak havoc with Australia's economic future." Ohhh but the internet filter, keeping a record of all internet communications and now the proposal to have software vendors liable for security holes in their products are proof of how this government does understand broadband. I laughed so hard I nearly coughed up a lung.
anonymous Jun 23, 2010 5:50 PM	Fer chrissake stop laughin', Rhino, this is serious. Well, it is if you can take Conboy seriously on anything.