Telstra Provides NBN Update

In an Investor Update presentation, Telstra described the NBN agreement as an opportunity to take the next step in corporate simplification, improving processes, and reducing the complexity associated with the old copper infrastructure. Under the NBN arrangement, Telstra is going to be paid to decommission its copper and HFC broadband

networks, giving it the opportunity to enter new digital markets. The increase in free cash flow that Telstra is predicting is in part a consequence of the timing of the NBN financials.

Subject to the NBN rollout, Telstra is targeting to operate in a CAPEX-to-sales ratio of 14%.

Over the duration of the NBN arrangements, that run for many years, Telstra expects $11 billion post tax net present value, which is offset by a number of costs and lost revenue.

http://www.telstra.com