Talks on fixed-line assets drag on

Telstra remains in negotiations on the future of its fixed-line assets, its most profitable unit, after five months of talks with the Government, which wants them split off as it starts to build a new A$43 billion ($55 billion) high-speed network.

Australian Communications Minister Stephen Conroy called for the split in September in a move he said will increase competition, lower prices and promote the development of new services.

With the nation's only existing national platform, rivals such as Optus pay fees to Telstra to offer some phone and internet services.

The government network, known as NBN, wants access to the ducts and trenches that house Telstra's network and also some of the customers it serves.

"We remain committed to try to find a mutually acceptable outcome, but the path ahead remains immensely complex," Telstra chief executive David Thodey said.

"The best interests of our investors, our employees and our customers have remained paramount and we will continue to keep the market informed when significant developments occur."

In New Zealand, 33 confidential proposals from 18 companies to build a $1.5 billion government-backed high-speed broadband network were submitted to the Ministry of Economic Development by the end of last month.

Of those, two were plans to build a nationwide fibre network.

Telecom has submitted two alternatives - a proposal which matches the requirements of the Government but would see it cede control of the fibre assets and a plan which builds on the company's fibre-to-the-node programme.

"It makes maximum use of the fibre already in the ground, assures high quality and guaranteed delivery, and the absolute minimum of waste," said Telecom chief executive Paul Reynolds.

The Government has indicated it would look at alternative approaches as long as the companies involved also lodged a plan which complied with the requirements set out by the Government.

A further announcement from Crown Fibre Holdings, the entity formed to manage the Government's fibre investment, is expected shortly.

- ADDITIONAL REPORTING : BLOOMBERG