Telstra Postpones July 1 Vote on NBN Partnership

Due to ongoing negotiations, Telstra will not be able to complete work necessary to bring the proposed A$11bn deal with the NBN Co. to a shareholder vote on July 1. The company cited statutory requirements for the delay and said it is now looking for a later date. Telstra characterized the ongoing negotiations as continuing “to progress well.”http://www.telstra.com

• In February 2011, Telstra provided an update on negotiations with NBN Co. concerning the National Broadband Network. Key commercial terms of the deal have been now been finalized. NBN Co. would gain access to Telstra facilities and there would be a progressive migration of Telstra traffic onto the National Broadband Network. The deal is expected to deliver approximately $9 billion in post-tax net present value to Telstra.

  Telstra has provisionally agreed commercial terms relating to copper network decommissioning, dark fibre and duct usage, exchange usage, certain roll-out arrangements and other matters with NBN Co. The parties are working to complete the associated operational details and ensure all contingencies are addressed as part of the documentation process which is expected to be completed in the near future.