It has been close to three years in the making, but the $11 billion deal between Telstra and NBN Co has been finalised, setting NBN Co up to launch its three-year roll-out plan for the National Broadband Network (NBN).
Following Telstra shareholder approval of the deal late last year, and the Australian Competition and Consumer Commission (ACCC) accepting Telstra's structural separation undertaking (SSU), Telstra has today announced that it has finalised the deal's definitive agreements.
The deal will see Telstra open up its ducts, pipes and exchanges to NBN Co, as well as slowly migrate voice and broadband customers off the copper access network and hybrid fibre-coaxial (HFC) networks over to NBN fibre over the course of the 10-year roll-out period.
NBN Co will get access to Telstra's data and infrastructure to assess, and will soon announce its three-year indicative roll-out plan for where the NBN is likely to reach.
Telstra CEO David Thodey said that the finalisation of the agreements also means that Telstra's SSU will now come into force.
"Today, we have concluded almost three years of intense and complex negotiations with multiple parties, and we are very pleased we have delivered this positive outcome for our customers, employees and shareholders," he said in a statement. "With improving customer service and a very strong overall value proposition, we are well placed to retain and win customers as the industry transitions to the NBN."
NBN Co also welcomed the finalisation of the agreement.
"This is an historic day for the NBN, for the customers of NBN Co and the provision of high-speed broadband throughout Australia. Today, we have cemented the arrangements with Telstra that will enable the efficient re-use of Telstra's existing infrastructure as we undertake the orderly migration of fixed telecommunications services from the copper of today to the fibre of the future."
Thodey indicated that under the agreements, Telstra will pick up $300 million in cash this year, to be amortised over the next three years.