Telstra deal goes to NBN Co board today

Telstra deal goes to NBN Co board today

Summary: The board of the National Broadband Network Company (NBN Co) is set to vote on the $11 billion deal with Telstra today, almost a year since the two companies first signed a financial heads of agreement.

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The board of the National Broadband Network Company (NBN Co) is set to vote on the $11 billion deal with Telstra today, almost a year since the two companies first signed a financial heads of agreement.

Telstra CEO David Thodey yesterday remained tight-lipped about the deal that will see Telstra separate its wholesale and retail arms, lease its pits and ducts to NBN Co, and transfer its customers onto the NBN. However, last night, speaking before a Senate budget estimates hearing in Canberra, NBN Co CEO Mike Quigley said that the board would "consider the transaction" when it meets this morning, although he couldn't guarantee that the deal would receive board approval.

"I have been working for quite some time ... on this transaction and we will be putting our case before the board," he said last night.

The completion of negotiations has run into several hurdles, including a delay in passing the telecommunications reform legislation that will see Telstra structurally separate. After the NBN Co and Telstra boards both approve the deal, and it is signed off by Cabinet, the Australian Competition and Consumer Commission will take a look at it. As the last hurdle for the agreement to be sealed, Telstra shareholders will be given a chance to vote on it.

Quigley noted that the delays in the deal had set back construction at some of the second release sites.

"We have taken the view that the deal with Telstra would provide a better outcome for communities and for taxpayers and so it is worth waiting for," he said.

He was unable to provide the hearing with an actual figure on how far the delay in the deal had set the company behind in the roll-out, but said that once the deal was finalised, NBN Co would conduct an analysis to determine where the construction stands.

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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5 comments
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  • If this proceeds it is an utter disgrace!! We, the hapless taxpayers of this blighted country, will pay another $11 billion fresh taxpayer’s dollars to buy the asset we paid for in previous iterations of Telstra (PMG, Telecom ect). Opps, sorry we are not buying it we are only leasing it. In addition my accounts with Telstra are going to be "sold" to NBN Co. what if I don't want to be "sold"? What if I want to keep my current ADSL2 connection with which I am very happy and stay with Telstra?
    No chance apparently - I'm going to be sold!

    Before Rizz gets his knickers in a knot I am NOT a Telstra shareholder.

    However if this goes through I might quickly run (opps, sorry - split the infinitive case - I wouldn't want to offend any of my purist friends like Rizz) - I might run quickly to buy some.
    Brianab
    • "If this proceeds it is an utter disgrace!!"

      False. It'll be great.




      "will pay another $11 billion fresh taxpayer’s dollars to buy the asset we paid for in previous iterations of Telstra (PMG, Telecom ect)"

      You can blame the coalition for that.





      "In addition my accounts with Telstra are going to be "sold" to NBN Co. what if I don't want to be "sold"?"

      You have no idea how wholesale and retail works do you? Suggest you do some research before you embarrass yourself any further...





      "What if I want to keep my current ADSL2 connection with which I am very happy"

      You specially want an ADSL2 connection or ADSL2 speeds? Just sign up for a 12/1mbps connection with Telstra, really this stuff isn’t rocket science and presumably you are an adult. You should be able to work this out yourself...





      "and stay with Telstra?"

      Apparently not… who said you can’t stay with Telstra?
      Hubert Cumberdale
    • Shucks Brian...would you like my autograph?

      Well you mentioned me more than NBNCo, Conroy and even your precious Liberal Party (who you told us you are a fully paid minion of) .. I out numbered everyone except Telstra in your impassioned, uneducated spiel...!

      You still smarting from your previous lessons eh...LOL?

      "What if I want to keep my current ADSL2 connection with which I am very happy and stay with Telstra?"... you say?

      I suppose you wanted to keep the dirt road outside your place too did you (only if the party told you, I suppose)...

      Anyway Brian the NBN is for future generations, we don't expect the minority of old and selfish (as opposed to the vast majority - elderly and kind) like you to understand...

      Go ask your great grand kids... I'm sure they can teach a retired shyster a thing or two!
      Rizz-cd230
    • There, there Brian, good boy, now take your medicine...

      I'm sure you wanted to keep that lovely dirt road out the front of your place too and look how that turned out, eh?
      Rizz-cd230
  • wow, there something you don't see very often, the words "very happy" and "Telstra" in the same sentence! You do realise Brian, that you'll be able to retain Telstra as your provider, yes?

    Personally, and having been a Telstra customer for over 10 years, I can't wait to actually have a choice of who I have as RSP...
    Tinman_au