TELSTRA says it is still some distance from a deal with the federal government over its involvement in the national broadband network, confounding earlier suggestions a deal was imminent.
The company said there was still a significant gap between the price it was seeking for its fixed-line network and the price NBN Co, the government company established to build the broadband network, was willing to pay.
Telstra's statement to the stock exchange yesterday left the market unmoved - its shares closed unchanged at $3.17 - but Telstra's rivals accused the company of demanding a ''ransom'' from the government for its assets.
Telstra's statement came at the end of a difficult week for the government, during which it failed to pass legislation to split Telstra's wholesale and retail businesses, a move intended by the government to increase the pressure on the telco to strike a deal.
Telstra said it, the government and NBN Co were approaching the negotiations on a ''business-to-business'' basis.
''Currently there is a significant gap between Telstra and NBN Co on what each party considers to be an acceptable financial outcome and there are also a range of commercial matters that are yet to be agreed,'' Telstra said.
''Telstra is discussing ways in which the gap can be bridged, recognising that the government has highlighted the national interest benefits of the NBN and reform of the telecommunications industry.
''As Telstra has stated in its submissions to government, a range of legislative changes and regulatory approvals will be needed for an agreement to be implemented.''
In a note to clients, Morgan Stanley stock analyst Mark Blackwell said that NBN Co was only interested in Telstra's duct and pipe network not in its copper wires, which NBN Co will replace with fibre.
Telstra is keen to include its ageing copper network in any deal.
Rival Optus said Telstra had held back the telecommunications industry for 10 years.
''Telstra is now holding the Australian taxpayer to ransom by expecting them to fork out billions of dollars in compensation for an asset which is rapidly becoming redundant with the advent of fibre,'' Optus corporate affairs director Maha Krishnapillai said.
Earlier in the week, Family First senator Steve Fielding said he believed a deal over Telstra's involvement in the broadband network was ''imminent'', but his claim has found little backing.
Assessments of the value of Telstra's fixed-line assets varies considerably, with an Australian Competition and Consumer Commission report last year putting it anywhere between $8 billion and $33 billion, depending on methodology.
