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Navigation Primary Navigation Home Singapore Asia Pacific World Business Entertainment Sports Technology Top Stories Most Popular Secondary Navigation Australia China India Indonesia Japan Malaysia Philippines Thailand Vietnam Search Search: Telstra says dumped from A$10 bln broadband plan Reuters - 46 minutes ago MELBOURNE, Dec 15 - Australia's largest phone company, Telstra Corp. <TLS.AX>, said on Monday its plan for a national high-speed broadband network had been rejected by a government panel, knocking its shares down to a two-year low. Telstra said the rejection of its Request For Proposal plan for the Internet network, expected to cost around A$10 billion , was based on a technicality and that it is still willing to be in the running to build the network. "It is too early to rule anything in or out, and we remain hopeful that sense will prevail outside the RFP process at a later date," Telstra Chief Executive Sol Trujillo told analysts on a conference call. The government panel reviewing proposals for a high-speed broadband network, covering 98 percent of the population, dumped Telstra's plan because it did not include smaller businesses. "We are a bit surprised at taking this action on a triviality," Trujillo said. Trujillo said he hoped the Minister for Broadband Stephen Conroy would reverse the decide to exclude Telstra. A spokesman for Conroy said a media conference would be held to respond to Telstra later on Monday. Telstra shares fell 7 percent to a low of A$3.84, heavily underperforming a 3 percent jump in the broader market <.AXJO> The high-speed broadband network project has been beset by political wrangling, with Telstra seeking assurances it will not be forcibly split up before taking part. Six firms registered interest by the Nov. 26 deadline, including Telstra's main rival Optus, owned by Singapore Telecommunications Ltd <STEL.SI> and backed by a consortium of smaller players. Trujillo said Conroy could ignore the panel's recommendation to exclude Telstra, if other alternatives were not workable. "And they may choose to re-engage with Telstra at that point. We don't know. We're not speculating. But in the mean time, we will get on with what we need to do to compete," he said. Australia has slower and more expensive Internet than many developed countries, and the government has pledged A$4.7 billion to help build a NBN to cover the country's vast distances and inhospitable terrain. Telstra has pledged to match the government's money with A$5 billion of its own, and it claims it is the only company with the infrastructure and financial muscle to build the NBN. Trujillo played down any short- to medium-term impact on its business, as it will take some time before anyone starts building the network and then it would take around five years to build across the country. "In which case, any real impact on Telstra, even assuming we don't respond -- and, of course, we will respond competitively -- is years away," Trujillo said. Email Story IM Story Printable View Blog This Recommend this article Average (0 votes) Sign in to recommend this article » Most Recommended Stories » Related Articles: Asia Pacific Pakistan steps up its offensive against militantsAP - 31 minutes ago Britain promises more anti-terror aid to PakistanAP - 37 minutes ago Telstra says dumped from A$10 bln broadband planReuters - 46 minutes ago Malaysia's I-Bhd to ink Capitaland deal-paperReuters - 50 minutes ago Number of NKoreans increased at Seoul-funded estateAFP - 1 hour 6 minutes ago Most Popular – Asia Pacific Viewed Actress Jennifer Aniston appears naked in GQ magazine Queen Elizabeth II reins in extravagance as credit crunch grips US carmakers mull options as White House vows aid Fortis bank, saved from collapse, again on shaky ground Russia crowned Miss World 2008 in African event View Complete List » Search: Home Singapore Asia Pacific World Business Entertainment Sports Technology Top Stories Most Popular

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