Telstra Cuts $11B Deal With NBN Shares Set To Climb

X

The Federal Government has thrown in the towel and signed an $11 billion dollar deal with Telstra that gives them access to the telecommunication carriers copper network, exchanges and other infrastructure needed to roll out the National Broadband Network’s fibre network across Australia.

The Federal Government has thrown in the towel and signed an $11 billion dollar deal with Telstra that gives them access to the telecommunication carriers copper network, exchanges and other infrastructure needed to roll out the National Broadband Network’s fibre network across Australia.
The deal announced by Prime Minister Kevin Rudd and Communications Minister Stephen Conroy, will see Telstra share climb tomorrow, as analysts realise that Telstra has achieved a deal that will benefit the carrier as they roll out new revenue services such as Telstra BigPond movies, TV content and new services for the connected home. 
Under the deal, NBN Company will have access to Telstra’s network ducts, wires and infrastructure which will allow the NBN to roll out the fibre network quicker than without Telstra. 
As part of the deal, Telstra will migrate their customers onto the fibre network. Telstra will receive $9 billion over 6 years to compensate for NBN Co using its infrastructure and the loss of future income from fixed-line customers. 
According to the Sydney Morning Herald, a further $2 billion of government money will be used to set up a new company called USO Co, to look after Telstra’s Universal Service Obligations, retrain Telstra staff, and make NBN Co a wholesale supplier of fibre for new housing developments from January 1, next year.
As part of the deal Telstra gets a number of regulatory concessions worth approximately $2 billion. They also get to keep their 50% in Foxtel and they will be allowed to bid for  4G spectrum as it becomes available. 
The deal still has to be approved by the Australian Competition and Consumer Commissaion and if approved will deliver Telstra a post-tax net value of approximately $11 billion.
Prime Minister Kevin Rudd said that negotiations with Telstra had been ”very difficult, tough, hard”, with some analysts claiming that Rudd did not want to go the next Federal Election fighting with Telstra over the NBN.
More to follow.
BEL2221 4Square Magsafe 728x90 Telstra Cuts $11B Deal With NBN Shares Set To Climb
728x90 Telstra Cuts $11B Deal With NBN Shares Set To Climb
braun audio 728x90 Telstra Cuts $11B Deal With NBN Shares Set To Climb
4SQR Logi MX keys Mini 728x90 1 Telstra Cuts $11B Deal With NBN Shares Set To Climb
CUST Retention FY22 Sport WinterCodes Q3 NRL 728x90 Telstra Cuts $11B Deal With NBN Shares Set To Climb
gtv r3 728x90 px Telstra Cuts $11B Deal With NBN Shares Set To Climb
SPORT TW Banner Conversion EN 728x90 1x Telstra Cuts $11B Deal With NBN Shares Set To Climb
Flick of a switch 728x90 1 Telstra Cuts $11B Deal With NBN Shares Set To Climb
1 Telstra Cuts $11B Deal With NBN Shares Set To Climb
3 728x90 Telstra Cuts $11B Deal With NBN Shares Set To Climb


YOU MAY ALSO LIKE