First announced in June last year, the A$11bn (US$11.6bn) agreements that will see Australian incumbent Telstra participate in the country’s national broadband network project have finally been completed.
CEO David Thodey explained that these…
First announced in June last year, the A$11bn (US$11.6bn) agreements that will see Australian incumbent Telstra participate in the country’s national broadband network project have finally been completed.
CEO David Thodey explained that these agreements will “contribute to free cashflow generated in the medium term, provide us with greater financial flexibility and a stronger balance sheet, and help to offset the decline in free cashflow expected as customers migrate onto the NBN.”
The A$11bn will be provided “over the long term life of the agreements”, Telstra said without disclosing the exact duration.
As part of the agreements, the incumbent agreed last year to separate itself in order to limit competition issues.
But Australia’s regulator, the Australian Competition and Consumer Commission (ACCC), only gave the green light to Telstra’s separation plan a few days ago.
The company was asked to revise its undertaking three times after the ACCC became concerned about some the incumbent’s proposed measures.
The agreements will see NBN Co, the PPP responsible for the NBN project, taking over Telstra’s customer services on its copper and television networks. Telstra will also lease infrastructure. The separation is expected to be effective by 1 July 2018.
Under the NBN plan, the government aims to expand high-speed broadband internet access to all Australians by 2021 at a cost of US$38bn. It will provide services to 93% of the population through fibre, while a further 7% will be served by either wireless or satellite technology.
