Telstra, NBN Co. close to new deal on infrastructure: Report

Progress is picking up on the roll-out of the National Broadband Network, with one report indicating the Government and Telstra are close to finalising a deal that will see the NBN fibre installed through existing infrastructure, saving a substantial amount of time and money.

The Government has also announced that Telstra is now the fibre provider “of last resort” for housing developments of less than 100 lots or units approved after January 2011, and will also be responsible for developments approved before that data awaiting infrastructure.

The new report comes just days after a separate report indicated the Government may be close to a deal with telco giant Optus over a similar transfer of infrastructure.

According to the Australian Financial Review, the deal between NBN Co. and Telstra is nearing completion, and may be nearly worth as much as the $US9 billion deal which will see the telco giant hand over its existing copper infrastructure.

It has been revealed the new contract will involve the lease of 100,000 kilometres of existing duct space for the NBN, while over 10,000 telco equipment storage packs will be rented out in 2,000 telephone exchanges.

The contract will also include some provisions that mean NBN Co. will pay $4.5 billion over 10 years for when Telstra connects new customers to the NBN after disconnecting them from its copper network.

This deal will save the Government a significant amount of time and effort – instead of having to create new ducts and construct new infrastructure, leasing Telstra’s existing property will save quite a sum of cash.

Both the Government and Telstra were unavailable for comment this morning.

The report indicates the companies are rushing to have the deal approved by their respective boards before it heads to cabinet. It will also need approval from the Australian Competition and Consumer Commission.

Meanwhile, Communications Minister Stephen Conroy has announced that Telstra will now be the provider of last resort for housing developments under 100 homes approved after January 2011.

“Those arrangements have now been refined – in light of experience since December – to give developers and other stakeholders greater certainty,” Conroy announced.

The announcement comes after the building industry has complained of confusion around how new developments will be connected to the NBN. Under the previous arrangement, the NBN would be responsible for fibre arrangements in all new developments.

“Developers can still use any provider they wish to provide their communications infrastructure. These arrangements relate to the provider of last resort,” Conroy said.

Developers will still be responsible for installing pit and pipe infrastructure, the Government has said. In developments of less than 100 premises, where developers have an agreement with Telstra, developers need to transfer ownership of pit and pipe infrastructure to Telstra.

“The Government is committed to ensuring people in new developments have ready access to quality communications and that means optical fibre technology to the greatest extent possible. These arrangements are helping achieve this goal,” Conroy said.