Telstra will need to go beyond the proposed restructure it announced on Monday and demerge its fixed-line telecoms business if it is to be able to bid for NBN Co when the federal government puts the state-owned national broadband network up for sale.

An admission by Telstra chief executive Andy Penn that the company will have to go further than splitting itself into four operating businesses under a new holding company if it wants to be able to buy NBN suggested the telco was seriously entertaining the idea, Morningstar’s Brian Han said.