Telstra (ASX: TLS.AX) has put together the last details to move ahead with its definitive agreements with NBN Co. and the Australian to enable to it to participate in the National Broadband Network (NBN).
This development comes only a week after the country's telecom regulator, the Australian Competition and Consumer Commission (ACCC), accepted its revised Structural Separation Undertaking (SSU) plan for its wholesale and retail business units.
The service provider said that the agreement with the NBN will provide it with AUD 11 billion (USD 11.67 billion) in post-tax present value over the life of the agreements.
"The agreements are expected to also contribute to free cash flow generated in the medium term, provide us with greater financial flexibility and a stronger balance sheet, and help to offset the decline in free cash flow expected as customers migrate onto the NBN," said David Thodey, CEO of Telstra.
Under the terms of the agreement, Telstra will be able to retain ownership of its HFC network and its 50 percent share of FOXTEL.
Being able to finalize these agreements ends three years of uncertainty for Telstra and is major accomplishment for Thodey, who took over the CEO post from Sol Trujillo in late-2009.
Telstra's separation plan gets green light from Australia's ACCC
Telstra establishes wholesale agreement with Australia NBN
Internode believes it will gain better DSL coverage as part of iiNet
Australia's Internode targets greenfield FTTH opportunities
Telstra serves up wholesale fiber service in South Brisbane