Feeds

Telstra, NBN Co to sign new deal mid-2014: analysts

FTTN rush job proceeding at a snail's pace

Build a business case: developing custom apps

Australia's investment community has set mid-2014 as the date when it expects the government, Telstra and NBN Co to finalise a new three-way contract over infrastructure access.

If the stock market expectations are accurate, it would be yet another roadblock to the now-dead-in-the-water political promise that all Australians would have access to 25 Mbps by 2016.

According to the Australian Financial Review, stock analysts believe the on-hold status of the National Broadband Network project is going to give Telstra the chance to hold onto its “cash pile” for a year or more. The money the AFR refers to came from its sale of its interest in Chinese Internet business Motorhome.

To those that don't own Telstra shares, the question of whether the carrier pays its shareholders more, or instead pays down borrowings that covered its most recent spectrum purchase, is probably of marginal interest.

However, there's also this revealing remark attributed to Credit Suisse: “Credit Suisse research analyst Fraser McLeish said Telstra and NBN Co would most likely be aiming for a new deal to be finalised by mid-2014”, the newspaper states.

An access-to-copper deal is crucial to the government's plan to replace the original NBN fibre-to-the-premises design with fibre-to-the-node.

Under the original definitive agreement between Telstra and NBN Co, the incumbent was to receive $AU11.2 billion (net present value in 2011), in exchange for giving NBN Co access to its pits-and-pipes (as well as other infrastructure such as exchange access). This would have seen the copper progressively decommissioned as customers were relocated to the fibre connection (with customers to retain their existing retail relationships, and carriers to become wholesale customers of the NBN).

To roll out fibre-to-the-node, NBN Co needs access to the copper, either by purchasing the copper network outright from Telstra, or as a wholesale customer of the naked copper from Telstra – the matter which is now subject to a three-way negotiation between NBN Co, the government and Telstra.

A mid-2014 deal would set the start of the full-scale FTTN rollout – leaving the federal government just two years to achieve its “25 Mbps to everyone by 2016” promise.

That promise was already looking difficult to achieve, with the government's sixty-day review blowing out both the timing and costings promised by the new government. ®

Boost IT visibility and business value

More from The Register

next story
Video of US journalist 'beheading' pulled from social media
Yanked footage featured British-accented attacker and US journo James Foley
Caught red-handed: UK cops, PCSOs, specials behaving badly… on social media
No Mr Fuzz, don't ask a crime victim to be your pal on Facebook
Kate Bush: Don't make me HAVE CONTACT with your iPHONE
Can't face sea of wobbling fondle implements. What happened to lighters, eh?
Ballmer leaves Microsoft board to spend more time with his b-balls
From Clippy to Clippers: Hi, I see you're running an NBA team now ...
Amazon takes swipe at PayPal, Square with card reader for mobes
Etailer plans to undercut rivals with low transaction fee offer
Microsoft exits climate denier lobby group
ALEC will have to do without Redmond, it seems
Assange™: Hey world, I'M STILL HERE, ignore that Snowden guy
Press conference: ME ME ME ME ME ME ME (cont'd pg 94)
Call of Duty daddy considers launching own movie studio
Activision Blizzard might like quality control of a CoD film
US regulators OK sale of IBM's x86 server biz to Lenovo
Now all that remains is for gov't offices to ban the boxes
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 10 endpoint backup mistakes
Avoid the ten endpoint backup mistakes to ensure that your critical corporate data is protected and end user productivity is improved.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Rethinking backup and recovery in the modern data center
Combining intelligence, operational analytics, and automation to enable efficient, data-driven IT organizations using the HP ABR approach.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.