Telstra deal finalised; NBN marches ahead

Telstra deal finalised; NBN marches ahead

Summary: 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).

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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.

Topics: NBN, Broadband, Telcos, Telstra

About

Armed with a degree in Computer Science and a Masters in Journalism, Josh keeps a close eye on the telecommunications industry, the National Broadband Network, and all the goings on in government IT.

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  • Let's hope this will eliminate any possibilities of the NOalition destroying the biggest and most important infrastructure for this nations future re the internet. If some uneducated Liberal fools actually took time to educate themselves with what benefits the NBN brings to households, schools, hospitals, etc. etc., instead of viewing it as fast email and movie downloads, but then again we are talking about Liberal maggots who could never say Labor had a good idea.
    lmyleft
  • The coalition's own analysis of its 2010 loss confirmed that the leakage of votes in regional Australia due to its failure on broadband cost it at least three seats in an unloseable election. If they let Labor remain the only electoral option to get decent broadband in regional Australia, then at least five or six seats will slip away from them in 2013. If you have slow broadband in the city, at least you can get to services. In the bush, you often do without. The coalition needs to wake up and accept that the NBN has a technical design that is superior to OPEL and FTTN options, has a lower cost, and delivers for all Australians. The coalition should adopt the NBN, and its off-budget funding and cost recovery model, thereby depriving Labor of its only electoral advantage.
    umbria
  • Federal Govt builds state run telco using taxpayers money, Federal Govt sells telco but keeps money, Federal Govt builds new telco using tax payers money and legislates the old telco cannot compete. ???Federal Govt sells new Telco ?????
    I wish I could run my company like that !!
    georgeorwell
    • If you were supplying essential services (yes comms are essential) to all Aussies, without profit being your only goal... even though you have a lot of the actuals/basics wrong in your above comment, you may well get a look in...!
      Beta-9f71a