Telstra thinks NBN network sale is worth $16 billion

Telstra may have agreed to sell its network infrastructure to the Australian government's National Broadband Network Company (NBN Co.), but it thinks it should be paid at least AUD16 billion ($15.73 billion) for its assets.

The Australian reports that Telstra argued in a filing with the Australian Competition and Consumer Commission (ACCC) that the initial AUD11 billion ($9.7 billion) sum is a post-tax amount.

Although Telstra reached an agreement with the government to sell NBN Co. its network infrastructure in June, Telstra and NBN Co. are still working out a final agreement to transfer its customers over from its copper-based network.

David Thodey, Telstra's CEO, said that it would be "tremendous" if the NBN Co. and Telstra could wrap up negotiations by Christmas so shareholders could make a final decision on the deal by the middle of 2011.

But even if the two sides do agree on a price, an NBN Co. report pointed out that any deal would still need not only the ACCC's approval, but also parliament passing legislation on the deal.

"Accordingly, there can be no guarantee at this time that the transaction will progress to completion," the report said.

For more:
- The Australian has this article

Related articles:
Telstra agrees to sell wireline network to Australian government
Australian govt says it doesn't need Telstra to build the NBN
Telstra break up could be in peril
Telstra strikes out against changes to Australia's NBN plan

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