NBN Co to buy Telstra network for $11 billion

[macca]

Finally, some way forward...I wonder what's going to happen to BigPond?

NBN Co and Telstra sign historic agreement.
Telecommunications incumbent Telstra has agreed to migrate its copper and cable broadband networks to Government-owned NBN Co in a deal worth $11 billion.

The two parties have signed a financial heads of agreement, announced Sunday, that will provide NBN Co with access to Telstra's passive infrastructure (pits, ducts and backhaul fibre) and eliminate Telstra as a fixed-line wholesale competitor to the Government-owned entity.

Telstra, in turn, has been given assurance from Prime Minister Kevin Rudd that it can compete in auctions for 4G [LTE] mobile spectrum and face less regulation from the Federal Government.

The assets to be transferred as part of the deal were valued at $9 billion, whilst Telstra values the financial gain from "public policy reforms" signed as part of the agreement at $2 billion.

The $9 billion will be paid progressively as Telstra's copper network service is decommissioned and cable broadband network service deactivated. NBN Co will pay Telstra a fee for every customer migrated from these networks onto NBN Co's fibre network.

"Telstra has received written confirmation from the Prime Minister that Telstra would be able to bid for Long Term Evolution (LTE) wireless spectrum should the transaction be completed and that sufficient regulatory certainty will be provided on a range of matters for NBN Co and Telstra to enable the transaction to proceed," the telco said in a statement.

Telstra will maintain its cable network exclusively for the purposes of its Pay TV joint venture, Foxtel.

full story

[admin]

So thats another 11 billion in debt ?
This has got to be the most expensive broadband in the world.

[fandtm666]

So thats another 11 billion in debt ?
This has got to be the most expensive broadband in the world.

I think that was roughly the amount they anticipated and included in the total price for the build.

This now means that all internet users barr those on sat will be on the nbn so interesting times ahead now

[macca]

I would expect Optus to also sign over its cable network sometime soon

[hamguy2]

hi guys, i think that these big compays like telstra shouldnt have a big monopoly over broadband in this country there should be no limitations or limits what you can download also there shouldnt be no excess usage charges either its 2010 not 1990 .,also the prices of wireless for laptops should be more realistic as well ,also when are we go to get some decent pay tv channels over here instead of the same old garbage showtime made in australia .same as movie 1 movie extra and greats should be all canned hbo starz hbo 2 etc should be here now not this phoney foxtel and its fake crappy programming also the ausmark problem still exist, thx hamguy2 nsw

[admin]

Yes, but we have Hallmark. Hallmark is the greatest channel in the world.

[marty 17]

The NBN will pay Telstra rental for the access to pit,pipe etc.

The two parties have signed a financial heads of agreement, announced Sunday, that will provide NBN Co with access to Telstra's passive infrastructure (pits, ducts and backhaul fibre) and eliminate Telstra as a fixed-line wholesale competitor to the Government-owned entity.

But the best part of the announcement is that the pit and pipe etc shall not be duplicated now which should save a lot of $ on the cost of the project.

As I am stuck on wireless internet (not thru choice) I hope the NBN is completed sooner than later.

[albatross]

I would expect Optus to also sign over its cable network sometime soon

Optus' cable network will be no good. NBN is to be fiber to the home. Optus only have Fiber to the Node with 625 coax that extends to RG6 coax. Optus would be more likely to jump onto the NBN and stop using its Coax network and get some reliability that fiber will offer .

The Optus cable network was said to have a 10yr lifespan. It is stretching that in most areas already.

[albatross]

I think the best part of the deal is that all of us suckers that bought Telstra shares might see a dividend of sorts!

[marty 17]

Lets just hope the NBN does not get dumped if there was a change of government as the OPEL deal was (rightly or wrongly) as that will be more money wasted and put my dream of ADSL further out of my reach.

[gordon_s1942]

According to the Financial Pundits this latest Mirrors and Smoke proposal will take some 8 years to implement.
I am only 100 miles from Sydney and we dont have Broadband here and neither do many other areas but I was gladdend to see Northen Tasmania and one side of Armidale were chosen to be the first for this NBN as they must be really criticaly important areas to receive it.