The AU$11 billion deal between Telstra and NBN Co may not be finalised by the December 20 deadline, according to the Australian Competition and Consumer Commission (ACCC), putting the deal in jeopardy.
The ACCC is seeking more information from Telstra over the deal, after it had found some deficiencies in the original proposal. ACCC’s chairman Rod Simms told the ABC, “We’re working to achieve that objective, but I can’t guarantee that we will.”
“We’ll make our assessment on the appropriate basis within the legislation that we’re working on.”
The ABC also reports that the deal must get through before December 20 or the deal will be automatically terminated.
The AU$11 billion deal will see NBN Co accessing Telstra’s infrastructure for the next 30 years, and the Australian Government providing compensation as Telstra slowly decommission its fixed-line network. The deal was approved by Telstra shareholders, despite some voicing their objections, on Tuesday with 99% shareholder approval.