SYDNEY – To the delight of Malcolm Turnbull, NBN Co appears to have sealed a deal that will see it progressively taking over most – or possibly all – of Telstra’s vast copper network, as well as its HFC fibre pay-TV net, following renegotiation of the $11 billion deal struck by the former Labor Government.But NBN Co could be up for huge costs in design, construction and maintenance services on the network, which would be carried out by Telstra.
These points sank in over the weekend, following publication late last week of Telstra’s annual report. The report said the No. 1 telco had signed a non-binding heads of agreement with NBN Co as part of renegotiating the $11 billion deal.
Telstra is also believed to be looking to secure construction contracts for the NBN which could be worth between $5 billion and $6 billion.
It is already involved in a 1000-node trial using fibre-to-the-node technology.
Communications Minister Malcolm Turnbull has hailed Telstra’s decision to hand over ownership of the copper line and cable television networks to NBN Co for no extra money as “a major milestone” for the NBN.
Telstra is “not seeking any additional payment for the transfer of these assets,” Turnbull said. “We always said it wouldn’t be the case, because Telstra was shutting them down.”
Telstra and NBN Co have signed a non-binding commercial framework on the arrangements but the full text has not been revealed.
Telstra shares closed at $5.58 on Friday, on the back of its solid financial results. It’s the highest price for the shares since 2002.
