NBN Co could ultimately end up paying Telstra AU$98 billion over the next 55 years in lease payments for ducts, dark fibre and other telecommunications infrastructure, according to a Communications Day report.
The report sighted advice given to the former NBN Co board by Goldman Sachs in May 2013 that stated NBN Co would be required to pay Telstra AU$98.159 billion between 2011 and 2067, with the majority of payments due to Telstra for leasing its ducts, pits and pipes for the National Broadband Network (NBN) infrastructure.
Telstra has always reported the value of its deal with NBN Co to lease its infrastructure and migrate customers onto the NBN as being a net-present value of AU$11.2 billion, but through the leasing arrangements, NBN Co's payments to Telstra will increase over time as the network expands. The report stated that payments to Telstra will rise from AU$400 million this year up to AU$2.9 billion in 2067.
The Goldman Sachs report also was reported to state that the Coalition's proposal to use Telstra's copper, and HFC networks as part of its multi-technology mix approach, which was signed off last week, would add AU$2.4 billion to the value of Telstra's AU$11.2 billion deal.
Communications Day today also reported that the former Labor Cabinet was warned in 2011, shortly after the passage of laws designed to prevent infrastructure operators from cherry-picking high value areas, that the laws did not adequately address cherry-picking behaviour which was likely to pop up during the early rollout stages for the NBN.
The Federal Government is likely to address whether TPG will be allowed to proceed withto roll out fibre to the building services in 500,000 metropolitan apartments in the next few months.