Thodey firm on $11bn NBN deal
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Telstra Corporation (TLS) looks set to be a key player in the construction of the coalition's alternative national broadband network, but that alone is unlikely to boost shareholder returns, The Australian reports.
According to the newspaper, the coalition's cheaper NBN plan will utilise Telstra's last-mile copper network to connect to fibre nodes on street corners – a plan likely to require significant changes to the $11 billion deal Tesltra struck with the Gillard government in 2011 to lease its infrastructure and migrate its traffic on to the NBN.
Telstra chief executive officer David Thodey committed to working with the coalition to deliver their NBN, but said the telco will not settle for anything less than the $11 billion deal it was to be paid under the previous agreement.
"The new government has committed that they will seek to renegotiate our NBN agreements ... We will look to help facilitate this quickly with a view to minimise uncertainty," he told The Australian.
"While any negotiation takes place, our priority will remain focused on meeting our existing commitments and winning customers on the NBN where it is available."
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