Telstra gives the nod to structural separation

Beverley Head
Friday, 18 December 2009 07:04

IT Industry - Market

Telstra and the Australian Government have achieved a major breakthrough on the road to delivering a national broadband network by agreeing on the preferred model for the proposed transition.

In an announcement released to the ASX today Telstra said it and the Minister for broadband, communications and the digital economy, Senator Stephen Conroy had formalised terms of engagement with NBN Co which would facilitate the negotiation of “Telstra’s potential participation in the roll out of the National Broadband Network.”

While all the parties were at pains to stress that the terms of engagement did not guarantee a final agreement would be struck, it does set out the framework for future discussions.

Just as government leaders presently gathered in Copenhagen to discuss how to tackle climate change are expected to only come up with an agreement to have an agreement, Telstra and the Government at least now have a framework to negotiate an agreement.

The parties are nevertheless discussing commercial wholesale arrangements for NBN Co’s use of Telstra’s passive infrastructure, including ducts and exchange space, and backhaul.

Welcoming the announcement Senator Conroy issued a release noting that; “While there are many complex issues still to be resolved before any final agreement is reached, I remain optimistic that both parties can find a mutually acceptable outcome.”

According to communications analyst Paul Budde, it’s an important step forward.

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