Media Release
Senator the Hon Stephen Conroy
Minister for Broadband, Communications and the Digital Economy
Deputy Leader of the Government in the Senate
Terms of Engagement agreed between Telstra and NBN Co
The Government today welcomed the update on progress in negotiations between Telstra and NBN Co regarding Telstra’s participation in the rollout of the National Broadband Network (NBN).
"The update on progress made today by Telstra and NBN Co demonstrate that both parties continue to work constructively," the Minister for Broadband, Communications and the Digital Economy, Senator Stephen Conroy said.
The Terms of Engagement formalised by the parties today includes a preferred model for any agreement which would see a progressive transition from Telstra’s copper access network to a fibre to premise National Broadband Network.
"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. I thank the parties for their hard work and determination in moving these negotiations forward."
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. However, the Government considers it will also be important under this type of model to improve competitive outcomes during the transition period. The Government will be closely consulting with the ACCC on this issue.
The Government remains committed to ensuring that any agreement reached by the parties is subject to necessary oversight, including approval by the ACCC as envisaged under the Telecommunications Legislation Amendment (Competition and Consumer Safeguards) Bill 2009.
While the legislation remains an important reform in its own right, the Government has always said that it also provides a framework within which any agreement with Telstra can be independently evaluated by the ACCC. The Government remains determined to debate and pass this Bill as a matter of priority early in the new year.
"Given the commercially sensitive nature of the discussion between NBN Co and Telstra, at this stage the Government will not be commenting further on the negotiations."
Date: 18 December 2009
Contact: Tim Marshall 0408 258 457
