Telco dips on low forecast

SYDNEY: Telstra will post little to no sales growth in 2009/10 as Australia's biggest telecommunications company faces headwinds including a higher dollar and stronger competition.

Shares in Telstra slipped A12c, or 3.38 per cent, to A$3.43 yesterday from Thursday's four-month-high close after the company cut the previous guidance of low single-digit growth.

Telstra also yesterday formalised terms of engagement with NBN Co, which is building Australia's national broadband network, to provide information from a trial fibre-to-the-premises deployment.

Telecommunications analyst Paul Budde said agreement on a preferred model meant the parties could start working to find a way to move smoothly to a point where Telstra was no longer a wholesale provider.

"Once you start walking in the same direction, it will be much easier to find solutions that are in the interests of both parties."

- AAP