Last checked at 
* Labour pledges to nationalise parts of BT in election
pitch
* TalkTalk CEO says talks paused as industry digests policy
* Labour say to talk to broadband providers about fibre
access
* TalkTalk uses BT's Openreach network
(Adds detail, quotes, shares)
By Alistair Smout
LONDON, Nov 15 (Reuters) - British broadband provider
TalkTalk said on Friday that a deal to sell its
FibreNation business had stalled after the opposition Labour
Party announced a plan to create a "British Broadband" public
service.
Labour said it plans to nationalise telecoms provider BT's
fixed-line network if it wins Britain's December 12
election.
The plan would also involve coming to agreements over access
arrangements with TalkTalk and other broadband providers that
have invested in fibre-to-the-premises, or possibly taking over
those parts of the companies, Labour's finance chief John
McDonnell said.
TalkTalk said it was still in discussions with interested
parties regarding its FibreNation business. Its shares were down
3.5% by 0934 GMT.
"Our discussions are very advanced, and yes, the news
overnight of course is making everybody in the sector pause and
consider," Chief Executive Tristia Harrison told Reuters.
"We were really close, really close, but I think something
of this sort that is in the news, obviously everybody is...
digesting and working out what it means."
TalkTalk launched FibreNation last year with the aim of
connecting 60,000 more homes in northern England with
"fibre-to-the-premises" full gigabit speed connections.
The plan underlined its ambition to build its own ultrafast
network reaching three million customers after it abandoned a
plan to team up with M&G Prudential.
Harrison said that the company had invested 60 million
pounds in FibreNation, adding that it was a tiny part of the
business.
She said the company had fielded an "awful lot of interest"
in the business and was pleased with how the takeover process
was going.
Sky News reported that Goldman Sachs-backed CityFibre
Holdings nearly signed a deal to acquire FibreNation on
Thursday.
Labour's plan contrasts with the governing Conservative
Party's vision for broadband. Prime Minister Boris Johnson has
called for an "end the digital divide" through the rollout of
full fibre broadband by 2025.
Johnson's Conservatives have a healthy 10-point lead ahead
of an election on Dec. 12, a poll by Savanta ComRes showed on
Wednesday, extending their advantage over Labour.
Apart from the fibre service provided by FibreNation,
TalkTalk depends on BT's Openreach network to provide its
services.
Openreach would be nationalised under Labour's plan, and
Harrison said the industry was still contemplating the broader
repercussions of the plan.
She spoke after TalkTalk reiterated its earnings outlook for
the year, and said she was confident the company could continue
to grow despite the uncertainties in Britain's political
environment.
"We feel we're in a strong place," she said.
Helped by accelerated customer growth in its hybrid fibre
broadband and reduced costs, it reported a 14% increase in
like-for-like earnings before interest, tax, depreciation and
amortisation (EBITDA).
(Reporting by Alistair Smout; editing by Jason Neely)
