Telstra to guard $11b NBN terms
Speaking at Telstra's annual investor day, its head of corporate affairs, Tony Warren, said the priority in any changes to existing contracts would be shareholders, first and foremost.
"We will do this in a way that seeks to protect shareholders' interests all the way through. We did this last time under much more trying circumstances," he said.
Under new chairman Ziggy Switkowski, NBN Co is conducting a 60-day strategic review in which the government's flagged changes to the rollout will be considered.
"We anticipate that the result of these reviews will be a move to a multi-technology solution for the NBN," said Mr Warren.
The Coalition has previously said it will change the NBN from fibre-to- the-premises to fibre-to-the-node, and use Telstra's copper for the "last-mile" connection.
Most important, Mr Warren said, would be the need to vary the existing definitive agreements (DA) to give NBN Co some kind of usage rights over the underlying copper, which Telstra owns.
"We think we need to make the DAs fit for purpose, as that purpose changes, we will need to make those variations," said Mr Warren.
Telstra also announced a reshuffle of management to reflect its strategy of focusing on improving customer advocacy, streamlining operations and expanding into Asia.
Gordon Ballantyne, the former chief customer officer, will lead the telco's retail-facing businesses, including Telstra Consumer and Telstra Business, NBN products, and sales and marketing.
Brendon Riley, the former head of operations, will be the new head of global enterprises and services. Kate McKenzie, formerly the innovation and technology boss, will be chief operations officer.
Telstra said it would focus on new growth opportunities in e-health, cloud solutions and Asia to boost failing profits in legacy business areas such as fixed telephony and Yellow Pages directories.
Frequently Asked Questions about this Article…
Telstra's $11 billion agreement with the government involves safeguarding the value of its contracts with NBN Co. during formal renegotiations. This agreement is crucial for Telstra as it aims to protect shareholder interests while adapting to changes in the NBN rollout strategy.
Telstra plans to protect shareholder interests by ensuring that any changes to existing contracts with NBN Co. prioritize shareholders. The company is confident in its ability to safeguard these interests, even under challenging circumstances.
The NBN rollout strategy is expected to shift towards a multi-technology solution, moving from fibre-to-the-premises to fibre-to-the-node. This change will involve using Telstra's copper network for the 'last-mile' connection.
Telstra needs to vary its existing agreements with NBN Co. to provide usage rights over its copper network, which is essential for the new multi-technology NBN rollout strategy. These variations will ensure the agreements remain fit for purpose as the rollout evolves.
Telstra has announced a reshuffle in its management team to align with its strategic focus. Gordon Ballantyne will lead retail-facing businesses, Brendon Riley will head global enterprises and services, and Kate McKenzie will become the chief operations officer.
Telstra is focusing on new growth opportunities in e-health, cloud solutions, and expanding into Asia. These areas are targeted to boost profits as the company faces declining revenues in legacy business areas like fixed telephony and Yellow Pages directories.
Telstra is adapting to industry changes by renegotiating its agreements with NBN Co., focusing on shareholder interests, and exploring new growth opportunities in emerging sectors such as e-health and cloud solutions.
Telstra's copper network is crucial for the NBN rollout as it will be used for the 'last-mile' connection in the new fibre-to-the-node strategy. This change requires Telstra to grant usage rights over its copper network to NBN Co.
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