Telstra to charge more for broadband

According to a report in The Australian, Telstra would need to charge consumers 15% more than other suppliers for the proposed broadband network

According to a report in The Australian, Telstra would need to charge consumers 15% more than other suppliers for the proposed national broadband network in order to deliver on investment promises.

Citing a report from the Centre for International Economics, The Australian revealed that
detailed economic modelling in the report has found Telstra’s higher-than-average rate of return would have a significant negative impact on the Australian economy, forcing it to contract, driving down real GDP and disposable wages and increasing prices more broadly.

Telstra spokesman Phil Burgess told The Australian in April that Telstra wanted a return north of 18 per cent on its proposed investment.

The report say the target is 2 per cent higher than alternative investors expected from the same asset.

Source: The Australian

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