by CIO Staff

Telstra deal with NBN Co progressing but will cause delays

Mar 18, 2011
Cloud ComputingGovernmentGovernment IT

A deal between telcos Telstra and NBN Co looks to be a step closer with NBN Co confirming the definitive agreement between the two parties is “progressing well”, but those in NBN Co’s ‘second release sites’ will have to wait a bit longer for fibre-to-the-home broadband.

According to a statement issued by NBN Co, both sides are working through the minutiae of the final negotiation and documentation process.

A definitive agreement will provide the company with access to Telstra’s infrastructure, including important pit, pipe and conduit that will allow more of the rollout to progress underground.

“A definitive agreement between Telstra and NBN Co will be good for Telstra, good for NBN Co and good for the country,” NBN Co CEO, Mike Quigley, said in a statement. “It is therefore worthwhile taking the time to get the right outcome.

“A deal will lead to less disruption for the community, and reduce our rollout costs. It is better for the community and better for taxpayers”.

NBN Co continues to roll out its ‘first release sites’, which are nearing the completion of their construction phase. These include:

  • A part of the suburb of Brunswick in Melbourne
  • An area of Townsville covering parts of the suburbs of Aitkenvale and Mundingburra
  • The coastal communities of Minnamurra and Kiama Downs south of Wollongong
  • An area of west Armidale, NSW, including the University of New England
  • The rural town of Willunga in South Australia.

According to NBN Co, the Telstra deal and the ACCC decision on points of interconnect will be factored into the timing of future rollouts for communities in ‘second release sites’.

Telstra has also confirmed it will push back its 1 July extraordinary general meeting to allow shareholders to vote on its financial heads of agreement with NBN Co.