Telstra signs NBN Definitive Agreements

Stuart Corner
Thursday, 23 June 2011 09:21

IT Policy - Regulation

Telstra has signed definitive agreements with NBN Co and the Commonwealth for its participation in the rollout of the National Broadband Network.

Telstra has agreed to disconnect, progressively, copper-based customer access network services and broadband services on its HFC cable network (but not pay TV services on the HFC) that are provided to premises in the NBN fibre footprint, and will migrate its services onto NBN-based services over the expected 10 year build period of the NBN.

Telstra will provide NBN Co with large scale access to certain infrastructure - dark fibre, exchange space, lead-in-conduits and ducts - at prices based on committed large volume levels of usage and availability.

The term of the infrastructure agreement will be between 35 and 40 years (the precise term depends on a number of factors including NBN Co's rollout schedule) from commencement, plus two 10 year options to extend exercisable by NBN Co. The infrastructure will be taken over the course of the NBN rollout and payments made for an assumed average period of 30 years.

In order to maximise the availability of this infrastructure, Telstra will undertake necessary work on the infrastructure. Telstra retains ownership of all infrastructure assets, except for those lead-in-conduits used by NBN Co which will become NBN Co property once used.

The Government has agreed to a package which includes increased funding for the delivery of the Universal Service Obligation (USO), clarification of Telstra's USO responsibilities for the supply of infrastructure in new developments in the NBN environment, and the avoidance of certain costs to Telstra through various funding measures such as funding of a public information campaign, and for employee retraining; and Telstra and NBN Co have also agreed to key product feature and price commitments relating to NBN Co's basic voice and data offering. These will be addressed in NBN Co's full product terms, which remain subject to further development and industry consultation.

"These agreements represent an important milestone in addressing much of the uncertainty for Telstra associated with the NBN and Government regulation and allow us to focus intently on our customer service and simplification strategy," Telstra Chief Executive Officer David Thodey said.

CONTINUED