[LINK] Telstra deal?

[stephen at melbpc.org.au]

"The government today indicated that the potential deal would meet its 
demands for the structural separation of the (Telstra) telco giant."

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Telstra shares fall on revenue warning, reaches tentative deal on NBN 

UPDATE: Mitchell Bingemann From: The Australian December 18, 2009 12:06PM 
http://www.theaustralian.com.au/business/industry-sectors/telstra-falls-
on-revenue-warning-reaches-tentative-deal-on-nbn/story-e6frg9hx-
1225811713106  (snipped ..)


Telstra and the government announced they had agreed on tentative terms 
that could see the telco migrate its traffic from its copper network to 
the NBN.

The parties are also discussing commercial wholesale terms that could see 
the NBN Co lease Telstra’s expansive backhaul and its network of access 
pipes and ducts needed to install fibre to homes.

But a definitive deal is still a way off from being signed and delivered.

The NBN Co reiterated that no commercial terms have yet been agreed and 
that is unlikely to change until Telstra can secure the monetary 
compensation it believes it deserves to shift traffic onto the NBN -- a 
wait that is expected to drag on for months.

Communications Minister Stephen Conroy said: "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."

The government has been locked in private negotiations with Telstra since 
September to determine what role the telco will play in a broadband 
network that will supply 90 per cent of Australian households with 
broadband access speeds of up to 100Mbps.

Throughout the negotiations the government has wielded a big stick in the 
form of legislative changes to the telecommunications regulatory regime 
that could force Telstra's hand in a deal for its assets.

The legislation threatened to bar Telstra access from the wireless 
spectrum it needs to evolve its mobile broadband business unless it 
agreed to divest its cable broadband network and its half-share in 
Foxtel. Telstra could only avoid the threats if it agreed to voluntarily 
dismember its retail and wholesale arms.

But with Telstra’s willingness to progress a deal, it now seems likely 
that the telco will be able to bargain away some of the harsher 
implications of the bill. The government today indicated that the 
potential deal would meet its demands for the structural separation of 
the telco giant.

"A model that involves the progressive transition from Telstra's copper 
access network to a fibre-to-the-premise NBN and an acceptable solution 
to the use of ducts and backhaul infrastructure will deliver structural 
separation," the government said.

"However, the government considers it will also be important under this 
type of model to deliver improved competitive outcomes during the 
transition period. The government will be closely consulting with the 
ACCC on this issue."

It's now unclear if the legislation in its current form will ever see 
light of day again.

Meanwhile, Telstra has invited NBN Co to act as an observer on its fibre 
to the premise implementation in Point Cook, Victoria.

Around 1500 residential customers will ditch their copper access for FTTP 
technology. The project is expected to be completed by May 2010, Telstra 
said.

NBN Co's presence could provide "important insights into the network 
deployment and customer migration aspects of the NBN," the telco said.

"Rolling out fibre is in line with the government's vision to get fibre 
to as many Australian homes as quickly as possible and could provide 
valuable lessons for the NBN," said Telstra network and technology 
executive director Michael Lawrey.

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Cheers,
Stephen