By Ian Verrender – [Australia] Telstra’s management has struck a clever deal, one that largely insulates the company from any change of plan to the NBN rollout.
The $11 billion deal is comprised of three main payments. The first is $5 billion for a 30-year lease over Telstra’s fixed-line infrastructure. Thanks to some clever negotiations by Telstra’s Tony Warren, the company receives that money even if the network is not built.
The second component is $4 billion, which it only receives as it switches customers over to the NBN. But again, there is a clever clause that protects the company. Customers who want to maintain their old service will continue to pay Telstra for the privilege.
The final component is $2 billion for providing the Universal Service Obligation so as to ensure telephones at a fair price for all Australians. Prior to the deal, Telstra was forced to fund that as part of its monopoly obligations. more> http://is.gd/fx6QmZ
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