Media Release
Senator the Hon Stephen Conroy
Minister for Broadband, Communications and the Digital Economy
Deputy Leader of the Government in the Senate
Minister Assisting the Prime Minister on Digital Productivity
Major step forward for Government - Telstra - NBN Co agreement
The Gillard Government today welcomed the announcement by Telstra and NBN Co that they had finalised key commercial terms to allow for the more efficient rollout of the National Broadband Network (NBN).
Today's announcement represents a big step towards bringing affordable, high speed broadband to every home, school, hospital and business in Australia - no matter where they are located.
The commercial terms pave the way for NBN Co to make use of Telstra's assets to rollout the NBN and for Telstra to decommission its copper network.
To support these arrangements, the Government and Telstra have also reached inprinciple agreement for the package of measures announced by the Government midlast year to facilitate the transition to the NBN.
Senator Conroy said these important measures include a public information campaign; assistance to retrain Telstra's workforce to deploy the NBN; and implementing the Government's reforms to the delivery of the universal service obligation and other public interest services.
"This is another significant step forward in the delivery of the NBN, the largest nation building infrastructure project in Australian history," Senator Conroy said.
"Along with allowing for a cheaper, more efficient rollout of the NBN, the inprinciple agreement ensures there is continuity of all basic universal service outcomes for consumers while the country transitions onto the NBN."
The Government, Telstra and NBN Co are now working constructively together to finalise the detailed commercial documentation.
Once the definitive agreements have been considered the Government, Telstra and NBN Co will be in a position to provide more information on the arrangements. Telstra will now commission an independent expert report for their shareholders to consider.
Importantly, the Australian Competition and Consumer Commission (ACCC) will also scrutinise the terms as part of its consideration of Telstra's Structural Separation Undertaking.
Date: 10 February 2010
Contact: Suzie Brady 0408 258 457
