Telstra will have to lower dividends and cut prices thanks to NBN, says Moody's

By Lucy Battersby
Updated July 29 2016 - 12:24am, first published July 28 2016 - 3:08pm
Telstra will still be the biggest company, but its position is weakening because of the national broadband network.   Photo: James Davies
Telstra will still be the biggest company, but its position is weakening because of the national broadband network. Photo: James Davies
Telstra owns most of Australia's telephone network and other companies have to pay it an access fee. This will change once the NBN is complete.  Photo: Carla Gottgens
Telstra owns most of Australia's telephone network and other companies have to pay it an access fee. This will change once the NBN is complete. Photo: Carla Gottgens
Telstra chief executive Andrew Penn and chief financial officer Warwick Bray answer questions during an Telstra Investor Briefing in May, 2016.  Photo: Darrian Traynor
Telstra chief executive Andrew Penn and chief financial officer Warwick Bray answer questions during an Telstra Investor Briefing in May, 2016. Photo: Darrian Traynor

Telstra may have to cut its generous dividends and reduce retail prices in coming years as the government-owned national broadband network takes away up to 5 per cent of its annual revenue, according to Moody's Investor Services.

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