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SYDNEY - Despite Telstra's fury at losing a Government subsidy of almost A$1 billion ($1.1 billion) for a regional broadband network, stockmarket analysts are less concerned.
They say the telco is still in the box seat to build a fibre-optic network.
The Government announced yesterday that SingTel's subsidiary Optus, and Elders, wholly owned by Futuris, would add A$917 million of their own money to the A$958 million subsidy to build a mostly wireless rural broadband network.
Credit Suisse telco analyst Justin Cameron said Telstra would not be hurt seriously by the decision.
"In relation to Telstra, we view regional Australia representing less than 5 per cent of group profit and hence the competitive tender is unlikely to impact Telstra's returns at all," Cameron said.
He did not expect serious movement in the Telstra share price because the company was most likely to be selected to build a multibillion-dollar fibre optic broadband network in metropolitan Australia. Telstra shares fell A8c to A$4.74.
- AAP
