The Australian
2 Apr 2008
THE federal Government has cancelled a near-$1 billion funding agreement with the Opel consortium to build a broadband network in Australia's more remote areas.
Opel partners Futuris (ASX: FCL: quote) and Singapore Telecommunications (ASX: SGT) both told the Australian stock exchange of the cancellation of the contract this morning.
The termination of the Opel network funding, which totalled $958 million, will likely make an upcoming tender for the Government's planned fibre-to-the-node network (FTTN) even more competitive.
Shares in Futuris fell nearly 3 per cent early this morning to $1.84. SingTel, however, remained in favour, rising 1.6 per cent.
If the companies are unable to recover money from the Government, Futuris will make a provision of $15 million as a non-recurring item and SingTel-owned Optus will write off $9 million.
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