In one of the longest running sagas in Australia’s telecoms history, the government’s National Broadband Network project, estimated to cost up to A$36 billion, has come under severe scrutiny from opposition parties and segments of the population because of its huge costs since it was first announced.
In a game changing development confirmed last month, the country’s telecoms regulator finally accepted Telstra’s plan to lead Australia towards next-generation broadband, as the company confirmed it will begin the closure of its fixed copper lines, satisfying competition regulation.
Telstra today confirmed it has reached a definitive agreement with the government and NBN Co to roll out fibre-optic networks in one of the world’s largest markets, with aims to achieve speeds of 100Mbps.
Telstra CEO David Thodey spoke of his relief at the positive outcome after substantial negotiations with the government and regulators. “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,” he said.
According to the Wall Street Journal, the telco will receive approximately A$11 billion in post tax net present value over the long-term life of the agreement.
