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NBN’s big new deal

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Confused by the detail of the Heads of Agreement between Telstra and the National Broadband Network Company (NBN Co)? In this week’s Twisted Wire we explain what has been agreed, what impact it will have and what we need to watch out for as the agreement progresses to its final stage.

Early on Sunday morning, when most of us were asleep, or drunk, or watching the football, Telstra signed a non-binding agreement with the NBN Co to participate in the National Broadband Network. Rather than being arch enemies it looks like they could become bosom buddies. You see, money can buy a friendship.

In today’s program I’ll explain the deal in detail and highlight a few areas for concern — like:

  • What’s the impetus for Telstra to move customers who choose to stay on their low cost copper network?
  • Will the ACCC allow an agreement that sees competition effectively reduced with the migration of customers from Telstra’s HFC network?
  • How will NBN be protected against Telstra overcharging for its passive network (ducts and the like) down the track?

Clearly, any agreement will raise hundreds of questions like this. A simple sale of Telstra’s wholesale arm would have been a simpler result but, hey, this is the telco industry. We like things complicated!

To give their views on the deal you’ll hear from Ovum research director David Kennedy and National’s Senator Barnaby Joyce. Plus sound bites from Telstra’s analyst briefing on Monday, with Telstra CEO David Thodey and Telstra CFO John Stanhope.

Good luck making sense of it all!

First published on ZDNet

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