Telstra's board has urged the company's 1.4 million shareholders to vote in favour of handing over the telco's fixed-line monopoly to the National Broadband Network Co (NBN Co) after an analysis shows the it would be $4.7 billion worse off if it attempted to compete with the government backed broadband company.

 

Grant Samuel, an independent advisor, urged the company to complete the $12.8 billion handover amid fears that the telco will continue its market dominance if tougher competition laws are not introduced.

 

"The directors have looked at this every way possible and are in unanimous agreement to recommend the shareholders vote in favour," Telstra CEO David Thodey said.

 

Mr Thodey said that the sale of the company's fixed-line assets would be a "stake in the ground" to protect the company from any future collapse of the NBN Co or change of government. Mr Thodey also said that the sale of the assets would add an estimated 88 cents per share, or a total of $11 billion,  to the company's valuation.

 

The announcement by the Telstra board comes as the Australian Competition and Consumer Commission warned that the company would have to add more concessions to its structural separation plans before the regulator would permit the move.