Feeds

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

FTTN rush job proceeding at a snail's pace

Seven Steps to Software Security

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
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Airbus promises Wi-Fi – yay – and 3D movies (meh) in new A330
If the person in front reclines their seat, this could get interesting
UK Parliament rubber-stamps EMERGENCY data grab 'n' keep bill
Just 49 MPs oppose Drip's rushed timetable
Want to beat Verizon's slow Netflix? Get a VPN
Exec finds stream speed climbs when smuggled out
Samsung threatens to cut ties with supplier over child labour allegations
Vows to uphold 'zero tolerance' policy on underage workers
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
prev story

Whitepapers

Top three mobile application threats
Prevent sensitive data leakage over insecure channels or stolen mobile devices.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.
Mobile application security vulnerability report
The alarming realities regarding the sheer number of applications vulnerable to attack, and the most common and easily addressable vulnerability errors.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.