In an after-hours ASX announcement, Telstra today signed a non-binding Financial Heads of Agreement with NBN Co to participate in the rollout of the National Broadband Network (NBN).
The transaction, if completed, would deliver to Telstra a post-tax net present value of approximately $11 billion. This includes payment for the decommissioning of Telstra’s copper network and cable broadband service, use of Telstra’s infrastructure, and the value to Telstra of avoiding costs, including certain Universal Service Obligation (USO) costs. Payments would be made progressively to Telstra.
The transaction would see Telstra progressively migrate its …