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Telstra reaches $9.7bn broadband network deal
21 June 2010
Australian incumbent Telstra has agreed to work with the government’s planned National Broadband Network
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Telstra
National Broadband Network
Australia
NBN
Foxtel
Telstra has reached a $9.7 billion deal to participate in the Australian government’s $38 billion National Broadband Network.
Under the nonbinding agreement, Telstra will let state-owned broadband provider NBN use its copper and cable network assets, including its ducts. It will also progressively transfer its fixed voice customers to the new network.
The government has assured Telstra that if the deal proceeds, it will not be prohibited from acquiring new mobile spectrum. It will also not be forced to sell its 50% stake in pay television group Foxtel. The company will also eventually be relieved of its universal services obligation.
A contract is likely to be discussed in the coming months. A final deal will be placed in front of Telstra shareholders for approval in the first half of 2011. If finalised, the deal would need the approval of the Australian Competition and Consumer Commission. GTB