[LINK] Telstra signs NBN deal

[Jan Whitaker]

Telstra finally seals $11b NBN pact

March 7, 2012 - 9:04AM

Telstra will participate in the rollout of the national broadband 
network (NBN) after finalising its $11 billion agreement with the 
federal government and NBN Co.

"Today, we have concluded almost three years of intense and complex 
negotiations, with multiple parties, and we are very pleased we have 
delivered this positive outcome for our customers, employees and 
shareholders," Telstra chief executive David Thodey said in a 
statement on Wednesday.

Telstra will receive approximately $11 billion over the life of the 
agreements, which ensure the telco's infrastructure will be utilised 
by the NBN.

"The agreements are expected to also contribute to free cashflow 
generated in the medium term, provide us with greater financial 
flexibility and a stronger balance sheet, and help to offset the 
decline in free cashflow expected as customers migrate onto the NBN," 
Mr Thodey said.

Telstra will retain ownership of its Hybrid Fibre Coax (HFC) cable 
network and its 50 per cent share in Foxtel.

The comments from Mr Thodey follow the Australian Competition and 
Consumer Commission's (ACCC) acceptance in February of Telstra's 
structural separation undertakings.

Those undertakings outlined how the telco would split its retail and 
wholesale businesses during the NBN's rollout.

AAP

This story was found at: 
http://www.theage.com.au/business/telstra-finally-seals-11b-nbn-pact-20120307-1uj4f.html 




Melbourne, Victoria, Australia
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