AAPT, Telstra broker $500m wholesale deal

AAPT, Telstra broker $500m wholesale deal

Summary: According to AAPT chief Paul Broad, it was a "breath of fresh air" negotiating a new $500 million a year telco-wide supply deal announced today with post-Trujillo Telstra.

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According to AAPT chief Paul Broad, it was a "breath of fresh air" negotiating a new $500 million a year telco-wide supply deal announced today with post-Trujillo Telstra.

AAPT CEO Paul Broad
(Credit: AAPT)

"We were very encouraged in the post-Sol era, under David Thodey, how constructive Telstra Wholesale has been in doing this deal," Broad told ZDNet.com.au this afternoon. "Given we spend $500m a year with Telstra it's a pretty important deal," he added.

The agreement struck yesterday between Australia's third-largest telco and Telstra Wholesale builds on an existing arrangement signed in 1991 when the Telecom New Zealand subsidiary commenced its fixed line offering in Australia. AAPT is Telstra's second-largest wholesale customer, the largest being Optus.

The 12-month deal covers all services AAPT acquires from Telstra, including wholesale line rental, which is currently being disputed under the Australian Competition and Consumer Commission, local carriage service and PSTN-originating terminating access.

Broad said the negotiations mark a new era for the way Telstra does business with its wholesale customers. "Having had those four years of difficulty dealing with Sol and his entourage, it's just such a breath of fresh air now to be able to do these sorts of things," he said.

"Not to say that it was easy nor that either party gave ground, but at the end of the day we were happy to do the deal, shake hands, have a cup of tea and move on," he said.

Telstra's side of the negotiation was headed up Paul Geason, recently appointed Wholesale group managing director. Geason had worked under Thodey during the chief's time as general manager of Telstra's Enterprise and Government Division at an executive director level, but was transferred to Wholesale shortly after Thodey's appointment earlier this year.

"This agreement clearly demonstrates that Telstra Wholesale is eager and willing to work with its customers to achieve commercial results for all parties," said Geason in a statement.

Topics: Telcos, Government, Government AU, AAPT, Optus, Telstra

Liam Tung

About Liam Tung

Liam Tung is an Australian business technology journalist living a few too many Swedish miles north of Stockholm for his liking. He gained a bachelors degree in economics and arts (cultural studies) at Sydney's Macquarie University, but hacked (without Norse or malicious code for that matter) his way into a career as an enterprise tech, security and telecommunications journalist with ZDNet Australia. These days Liam is a full time freelance technology journalist who writes for several publications.

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Talkback

15 comments
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  • Chicken or the egg

    "This agreement clearly demonstrates that Telstra Wholesale is eager and willing to work with its customers to achieve commercial results for all parties," said Geason in a statement.

    Did they become more agreeable after they lost Sol or after they lost the upperhand in the NBN? Maybe both?
    anonymous
  • Simple, Simon.

    Simon, why are you so concerned and disappointed that Telstra is gaining momentum. And why your focus on history with the remark about Sol.

    I look forward to the time that the Prime Ministers promised NBN is a reality and Telstra has 100% ownership of it (probably ten years down the track).

    Naturally the network will be completely open for competitors and regulation will be in place to ensure the ACCC will have no need for complaint.

    Also, the Australian taxpayer will see this FTTH application delivered at minimum cost and the exercise will be a win/win result for Mr Rudd/Conroy/Tanner and the Australian people.
    anonymous
  • huh sydney?

    um, sydney, rtfa, the article talks about Sol. Why do you want to ignore that?
    And how can telstra own 100% when they aren't allowed to and wouldn't be allowed to anyway?
    And if they don't (and they won't) then there is less need for the ACCC enforced regulation anyway.
    anonymous
  • Re; Simple Simon

    "NBN is a reality and Telstra has 100% ownership of it (probably ten years down the track).
    Naturally the network will be completely open for competitors"

    No Syd, the term 'Swine Flu' doesn't translate into 'Pigs can Fly', lol.
    G.
    anonymous
  • @simple simon

    "naturally the network will be completely open for competitors and regulation will be in place to ensure the accc will have no need for complaint".

    sydney, these nbn regulations you speak of that will be needed, are they the same regulations which currently apply, the ones you keep whinging about?
    anonymous
  • Sol's gone, so why keep bringing him up.

    Sol's history, and should be forgotten
    anonymous
  • Sol's gone, so why keep bringing him up.

    Anon this is all the Telstra bashers have got. Without Sol to kick they have no argument.
    anonymous
  • Yes, Sol's gone, so why keep bringing him up.

    No argument about that Syd.
    anonymous
  • Take your pick, Anon.

    Please Telstra knockers no more rubbish from you.
    No more argument about Sol's remuneration.
    No more argument about Telstra defying the ACCC.
    No more argument about Telstra being a monopoly.
    No more argument that Telstra should be banned from the NBN.
    No more argument that Telstra should be broken-up.
    No more argument that Telstra should be divested of its cable network.
    No more argument that Telstra should be forced to sell its holding in Foxtel.
    No more argument that Telstra should assist its competitors to survive.
    No more argument that Telstra is not Australia's favourite provider.
    No more argument that Telstra's 1,400,000 Australian owners don't deserve a fair go.
    No more argument that Telstra's 34,000 employees don't want their jobs.
    No more argument that Telstra's services are not superior to the competition.
    No more argument that the desperation of Telstra opponents is not showing.
    No more argument that the Australian public do not want Telstra involved in the NBN.
    No more argument that the Anti Telstra tricksters are not on a hiding to nothing.
    No more argument that it's not London to a brick on, that Australians and Telstra will be WINNERS.
    anonymous
  • Take my pick

    While Telstra have improved greatly since the departure of the US cancer, there are still a few points of contention.

    Myself and many others aare still convinced that structural separation is a necissity for the Australian market to thrive. Telstra still has the pstn monopoly and is still creating grief for Auatralians with pair gain, backhaul, access issues etc.

    Saying Telstra service is superior to any other is just marketing hype and retarded.

    Finally, there are a number of 100% Australian owned ISPs and SPs that deserve a fair go. Telstra has been breaking the rules in preventing access, fraudulently falsifying MDF records to show lack of capacity. Whilst Telstra may have pleaded guilty to some of these charges, they require intense scrutiny to ensure that they desist in their unfair attempts to destroy !00% Australian owned businesses.
    anonymous
  • @ Take your pick, Anon

    Tell you what Mr. Lawrence, let's make a deal.

    You stop your disgraceful, selfish, portfolio - greed driven, shareytales and I personally will stop hindering you and your mates lies with "the truth", just as you request.

    The ball is now in your court!
    anonymous
  • Lighten up RS.

    Eh, thanks RS but I never was much at tennis. But seriously, a pop gun could blast your self-serving arguments away. LOL and Ha Ha.
    anonymous
  • syd the comedian, as usual

    obviously syd, cause you just got aced again. lol and ha ha.

    but i think you meant to say, *i never was much at telecomms*.
    anonymous
  • re syd the comedian, as usual

    "obviously syd, cause you just got aced again. lol and ha ha"

    You have been watching the wrong ball game RS.
    anonymous
  • no balls sydney mike

    what would you know about balls sydney mike? little girls like you don't have any.
    anonymous