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Telstra Will Oppose Telco Reforms if Assets Undervalued
By: Reuters
Telstra Corp, Australia's dominant phone provider, threatened on Wednesday to oppose government reforms to the telecoms sector if these plans ended up undervaluing the company's huge asset base.
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Telstra is in talks with the government over the reforms, which would involve hiving off the company's fixed-line phone assets from the rest of the business and injecting them into a A$43 billion ($39.45 billion) national broadband network.
Telstra, which is looking to diversify its business away from fixed-line phone services into mobile and broadband, also reiterated its forecast for low single-digit growth in earnings before interest, tax, depreciation and amortisation (EBITDA).
Copyright 2009 Reuters. Click for restrictions.
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