Optus threatens to cut the cable

As part of ongoing negotiations with the Australian Competition and Consumer Commission on rights to share content with pay TV provider Foxtel, Optus has announced it will consider closing its own pay TV and cable Internet services if the Foxtel

As part of ongoing negotiations with the Australian Competition and Consumer Commission on rights to share content with pay TV provider Foxtel, Optus has announced it will consider closing its own pay TV and cable Internet services if the Foxtel deal is blocked.

While both Optus and Foxtel are keen to proceed with the content sharing plan, the ACCC is concerned it will give Telstra, half-owner of Foxtel, too much control over the content and pricing of Australian broadband and pay TV services.

According to this report, Optus' broadband network value is expected to fall by as much as $600 million on Thursday when parent company SingTel performs an asset write-down of $1 billion dollars on Optus' cable network, along with a $450 million loss announcement for the company's pay TV service.

If the deal proceeds, Optus will be able to unload some $600 million in Hollywood royalty debts to Foxtel, in exchange for access to Foxtel TV content.