Home topics news News Tech News Telstra joins in NBN fray under $11 billion deal with Govt David Olsen June 21, 2010 Telstra will come on board for the rollout of the National Broadband Network (NBN), after signing a non-binding Financial Heads of Agreement with NBN Co. NBN Co’s deal with Telstra, is worth $11 billion to Telstra, but needs to be agreed upon by both the Australian Competition and Consumer Commission and Telstra shareholders. The non-binding Financial Heads of Agreement deal 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 Obligations to rural Australia. The deal with NBN Co would see Telstra progressively migrate its voice and broadband traffic from its copper and cable networks to NBN Co’s network as it is rolled out. Telstra will continue to use its cable network to meet its pay TV contract with FOXTEL. Telstra Chairman Catherine Livingstone said the milestone was encouraging after a year of complex negotiations. “The Heads of Agreement is consistent with the Government’s high-speed broadband vision and desired industry structure. This agreement reflects a commitment by all parties to reaching a mutually beneficial outcome for Telstra investors, customers, employees and the industry,” Ms Livingstone said. Telstra Chief Executive Officer David Thodey said: “We will continue to work with the Government and NBN Co on the detail required to implement the principles agreed today. While today’s agreement is an