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Topic # 63079 20-Jun-2010 20:03 Send private message

NBN Co and Telstra sign historic agreement.

Jun 20, 2010 2:05 PM

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.

continued at following URL..

http://www.itnews.com.au/News/215939,nbn-co-to-buy-telstra-for-11-billion.aspx

 

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  Reply # 343628 21-Jun-2010 08:39 Send private message

Interesting to see how this plays out in NZ.. i.e pressure top do the same here..




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Old3eyes

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  Reply # 344931 24-Jun-2010 16:04 Send private message

Interesting that Chorus ahve already stated they will play hardball if they dont keep their monopoly in Auckland. I don't think it is possible because they would have had to get separation underway already, and they will be better off selling existing fibre and pathways for shareholdings in various Local Fibre Cos in a deal to migrate customers similar to Telstra's. As users are migrated to fibre, ducts become available that can be sold for future fibre runs.

I hope nobody tries to retask the phone exchanges ? they dont seem ideal at all for managing fibre to end users, and way too expensive for access seekers to install and colocate OLT cabinets. for example, Chorus has rules that require access seekers to run fibre out to a splicebox at the street pit if they want to interconnect with other access seekers. The whole approach is not compatible with open access, although I am not saying tangled cable trays like you can see in Sky Tower are appropriate either.




Qualified in business, certified in fibre, stuck in copper, have to keep going  ^_^

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