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2014-08-25

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Telstra copper, HFC to go to NBN Co.

Telstra expects to hand over parts of its fixed network assets to NBN Co as part of its revised deal with NBN Co.

Releasing its annual results on 14 August, Telstra said that although negotiations were not finalised they were proceeding on the basis of “NBN Co owning some or all of such assets progressively as the NBN is rolled out.”

“Progressively” is the key word here. The implication is that as the Fibre to the Node (FTTN) section of the Coalition’s NBN is rolled out and activated, the residual “last mile” copper beyond the node would be transferred to NBN Co.

In the case of the HFC network, the whole asset will presumably be transferred.

Significantly, the new arrangements do not seem to involve any proposed changes to the ownership of ducts and pits which NBN Co currently leases from Telstra as part of the original 2011 agreements. These – and the ongoing revenue stream they provide – would appear to remain in Telstra’s hands.

At the same time, Telstra says it is negotiating with NBN Co “in respect of the provision of design, construction and maintenance services which may potentially deliver more revenues to Telstra”.

Such a contract will also potentially deliver work for Telstra employees.

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