Fed: Concessions the government has had to make on Telstra sale

AAP General News (Australia)
08-17-2005
Fed: Concessions the government has had to make on Telstra sale

Concessions the government has had to make to sell Telstra:



First tranche (33.3 per cent) December 1996:

* $1.1 billion from sale proceeds for Natural Heritage Trust, with Tasmania to get bulk of funds

* $250 million Regional Telecommunications Infrastructure Fund, with $58 million going
to Tasmania and $53.1 million to Queensland.



Second tranche (16.6 per cent) June 1999:

* $1 billion social bonus package, of which $150 million went to Tasmania.



Third tranche (51.8 per cent) August 2005:

(in-principle agreement from joint party room)

* $2 billion trust fund to address telecommunications shortfalls.

* $1.1 billion for the rollout of broadband, new regional clever networks, mobile services
and additional services for indigenous communities.

* Telstra's network and retail operations to be split.



(Note: Telstra completed a share buyback in November 2004, taking the government's
stake in the company to 51.8 per cent)



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