telstra signs $11b nbn agreement

  1. 3,012 Posts.
    "Australian consumers will be the winners."

    "UPDATE 9am: The Federal Government's plan to bring high-speed broadband to most Australians is two steps closer to reality following agreements with the nation's largest telecommunications companies Telstra and Optus.

    Telstra, the Commonwealth and the builder of the $35.9 billion national broadband network, NBN Co, have signed definitive agreements for the rollout of the scheme across Australia.

    Telstra will receive $11 billion to decommission its copper network, shift customers to the NBN and allow access to its cable ducts.

    Meanwhile, Optus has reached an $800 million agreement with the Federal Government to move its customers to the NBN.

    Optus said it will progressively move its hybrid fibre coaxial cable customers to the NBN from 2014.

    Telstra chairperson Catherine Livingston said the definitive agreements required the approval of a majority of shareholders with the vote scheduled for the company's annual general meeting on October 18 in Sydney.

    The deal was signed following two years of negotiations where Telstra had to decide to participate in the NBN rollout or try other options.

    "The decision to participate was made on the basis that the proposed transaction is expect to provide us with the ability to recover more value for the business than the available alternatives, given the loss of value after the NBN policy announcements,? Ms Livingstone said in a statement.

    Optus chief executive Paul O'Sullivan said it was a fair deal for his company and a good result for consumers.

    "This deal supports the NBN to create a level playing field for all telcos,? he said in a statement.

    "Australian consumers will be the winners."

arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.