SMH.com.au
Telstra's management team is driving a hard bargain over the Rudd government's National Broadband Network (NBN), Communications Minister Stephen Conroy says.
He's moved to reassure shareholders their interests will be looked after regardless of whether the government manages to nut out a deal with the telco.
"This is a commercial negotiation and the stakes are high," Senator Conroy told Sky News on Sunday.
"(But) Telstra will ultimately only do a deal if it benefits their shareholders.
"They (Telstra management) drive a hard bargain, they continue to drive a hard bargain, they're going to not stop."
He maintains it will be a win-win situation should an agreement be reached, but conceded both sides will have to walk away if negotiations prove too difficult.
Telstra is holding separate negotiations with both the government and NBN Co over the billion-dollar network, which will be cheaper for taxpayers if they can work together.
Senator Conroy would not be drawn on whether it was considering compensation for Telstra, saying the details of negotiations would remain private.
He again played down concerns about the potential showdown should Telstra decide to compete with the government's NBN.
"Competition is what will lead to lower prices for consumers," Senator Conroy said.
Meanwhile, the coalition is maintaining its opposition to the NBN, arguing it's not too late to scrap it.
It is scheduled to begin its rollout in Tasmania in July.
Asked if the opposition would still dump the scheme so far into its implementation, Liberal frontbencher Joe Hockey said: "Absolutely."
"This is $26 billion of more borrowings ... on a technology punt," he told ABC Television.
"There's going to be a world of hurt if the government is allowed to continue with this project."
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