NBN Co has rejected Telstra's plan to sell off a portion of future revenue it receives from the national network operator.
Earlier this month, Telstra chief executive Andy Penn announced the telco's intention to monetise between $5 billion and $5.5 billion of recurring payments from the NBN, the proceeds of which would go towards reducing debt by around $1 billion. Telstra said that about 40 percent of total receipts it receives from NBN would be monetised.
Penn warned at the time that the transaction requires consent from the Commonwealth government and NBN Co. However, NBN Co notified Telstra this morning that its consent would not be given.
"Essentially we can't see how NBN's position can be protected/improved by Telstra's securitisation plan especially given the unpredictability of our operating environment in the 2020s," NBN Co said in a statement.
The payments Telstra receives from NBN Co to access its infrastructure are expected to be worth just under $1 billion a year by the end of the NBN migration period.
Telstra said the proposal was supported by its own investors and showed the value of payments to Telsta shareholders.
The telco didn't indicate whether or not it would continue to pursue the transaction.