Telstra says it's on the acquisition trail

Telstra boss David Thodey. Photo / Getty Images

MELBOURNE - Telstra is considering acquisitions as it tries to expand its product base, company chief David Thodey says.

The giant telco is interested in acquiring fresh capabilities rather than making so-called "bolt-on" acquisitions, which simply extend existing services, Thodey has told ABC TV.

"We'll keep expanding our product portfolio out but there are new opportunities coming along that may provide opportunities for us to do acquisitions," Thodey said.

"As the industry changes the needs of customers change, for example in the home, the digital home. How can you make it easier to connect your video and your broadband and your telephony? Those sorts of things are where we're looking."

Thodey also revealed that in the national broadband network (NBN) negotiations with the federal Government wrapped up recently his company had budged very little from its original position.

The deal ultimately struck will see the Government pay Telstra A$9 billion ($11 billion) to lease its infrastructure and A$2 billion for costs associated with reforms of the sector.

Thodey admitted that as the network was rolled out and consumers began to switch from copper wire to fibre for their home telephony, Telstra was expecting to lose market share from its fixed-line business.

Meanwhile, NBN Co chief Mike Quigley told ABC TV the Government got a good deal from its A$11 billion agreement with Telstra.

He said the cost of the NBN would fall below the A$43 billion estimated, but would remain above A$26 billion, the equity injection needed according to an implementation study.

- AAP