The Australian Government has terminated the $1 billion contract with the Optus-led OPEL joint venture for the creation of a broadband network for regional Australia.
SingTel, the parent company of Optus, said that the Government terminated the agreement because they believed that they conditions had not been satisfied. However, Optus and Elders Communications have maintained that they have met all conditions.
A spokesperson for the federal Communications Minister Stephen Conroy said that he will make a statement later today.
The agreement was reached in September last year. However, Telstra is currently disputing the agreement and was given access on documents that lead to the agreement.
Optus will write off $9 million in capital in the March quarter due to termination of the contract.