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HOME OFFICE / BROADBAND & WEB HOSTING

$11bn Deal Stays: Telstra's Thodey

By Computer Daily News | Monday | 04/03/2013

BARCELONA - Telstra CEO David Thodey has flatly ruled out any renegotiation of the $11 billion bounty deal it has inked with NBN Co, should the Coalition win the September federal election.


Thodey made the statement in an interview with The Australian at last week's Mobile World Congress in Barcelona.

"We have a contract with the Government and we know what value we need to participate.

"And that's really the end of the story," he said.

"In terms of the value our shareholders agreed to receive from the government and NBN Co, the deal has not changed."

After many months of negotiations, NBN contracted to progressively pay Telstra the $11 billion for decommissioning its copper network as the new fibre-based NBN is rolled out.

Those payments are seen as compensation for the market share and margin loss Telstra will suffer as it moves from its role as access provider to access seeker.

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