Telstra signs on for NBN

Agreement between NBN Co and Telstra to build Australia's National Broadband Network (NBN).

Telstra today signed a non-binding Financial Heads of Agreement with NBN Co to participate in the rollout of Australia's National Broadband Network (NBN).

The agreement between NBN Co and Telstra is expected to be worth $9 billion and includes the reuse of suitable Telstra infrastructure, and the progressive migration of customers from the telco's copper and pay TV cable networks to the new wholesale-only fibre network that will be built and operated by NBN Co.

The use of Telstra infrastructure includes pits, ducts and backhaul fibre and the decommissioning of Telstra's copper network and cable broadband service.

The Federal Government welcomed the announcement and said the deal with Telstra will "avoid unnecessary infrastructure" duplication during construction of the NBN. It also said the agreement will reduce the overall cost of building the network for taxpayers, result in higher take-up rates and revenue for NBN Co. The Government will mean less overhead cabling thanks to a greater proportion of the NBN rollout taking place underground.

"We will continue to work with the Government and NBN Co on the detail required to implement the principles agreed today," said Telstra CEO David Thodey. "While today's agreement is an important step, a very significant amount of work must still be done on many complex issues."

These issues are as "diverse as migration processes, taxation, the future of legacy regulations applying to Telstra and the consequences of any major changes to the NBN rollout schedule," according to a Telstra statement.

Telstra estimates that the agreement announced today will deliver Telstra a post-tax net present value of approximately $11 billion. The payments by NBN Co to Telstra will be made over a number of years as the NBN rollout progresses.

A joint statement issued by Prime Minister Kevin Rudd, Minister for Finance and Deregulation, Senator Lindsay Tanner and Communications Minister, Senator Stephen Conroy, said that the agreement will "ensure Australia finally has a genuinely competitive telecommunications industry which works for all Australian households and businesses, and helps to drive long-term productivity growth in our economy."

The agreement still requires the approval of the Australian Competition and Consumer Commission (ACCC) and Telstra shareholders, and can't be guaranteed. Telstra expects the agreement will be put its shareholders in the first half of 2011.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags Kevin RuddbroadbandNBNTelstranbn conational broadband networkSenator Stephen Conroy

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.
Ross Catanzariti

Ross Catanzariti

Good Gear Guide
Show Comments

Cool Tech

Toys for Boys

Family Friendly

Stocking Stuffer

SmartLens - Clip on Phone Camera Lens Set of 3

Learn more >

Christmas Gift Guide

Click for more ›

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Aysha Strobbe

Microsoft Office 365/HP Spectre x360

Microsoft Office continues to make a student’s life that little bit easier by offering reliable, easy to use, time-saving functionality, while continuing to develop new features that further enhance what is already a formidable collection of applications

Michael Hargreaves

Microsoft Office 365/Dell XPS 15 2-in-1

I’d recommend a Dell XPS 15 2-in-1 and the new Windows 10 to anyone who needs to get serious work done (before you kick back on your couch with your favourite Netflix show.)

Maryellen Rose George

Brother PT-P750W

It’s useful for office tasks as well as pragmatic labelling of equipment and storage – just don’t get too excited and label everything in sight!

Cathy Giles

Brother MFC-L8900CDW

The Brother MFC-L8900CDW is an absolute stand out. I struggle to fault it.

Luke Hill

MSI GT75 TITAN

I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Featured Content

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?