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Telstra says NBN deal is close

Telstra chief executive David Thodey is hopeful a successful conclusion to the telco's NBN negotiations with the ACCC will happen soon.

Telstra chief executive David Thodey says a decision by the competition watchdog on the telco's participation in the National Broadband Network (NBN) will be made soon.

The Australian Competition and Consumer Commission (ACCC) is reviewing Telstra's structural separation undertakings (SSU), the final step in sealing the $11 billion deal expected in 2012.

Thodey said he was hopeful of a successful conclusion to negotiations in the near future.

"We have repeatedly said to them (the ACCC) just how quickly we would like to get this done," Thodey told reporters at Telstra's half year presentation in Melbourne on Thursday.

"We are working constructively with the ACCC and we are making progress."

Thodey said Telstra's board was yet to decide on what capital management plans the telco would go with once its participation in the NBN was confirmed.

Some market analysts have speculated Telstra would announce plans to conduct a share buyback as a result of the NBN agreement.

Thodey said the board was committed to look at capital management once when the deal was finalised.

"I just wanted to reaffirm the board's decision that we said we would consider capital management after the SSU has been signed and then we would give you an indication on that," Thodey said.

"All options are on the table."

Telstra submitted a revised SSU to competition regulator in December 2011, setting out how it offers equivalent services to other telcos under the NBN.

Under the deal with NBN Co — the government-funded company charged with building and operating the network — Telstra will progressively decommission its copper-based network and allow NBN Co to access its pits, manholes and exchanges, and sell some infrastructure.

The ACCC was expected to hand down its decision by the end of February.

Earlier, Telstra announced a 22.9 per cent rise in first half net profit to $1.468 billion.

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More about: ACCC, Australian Competition and Consumer Commission, etwork, Telstra

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