Telstra is splitting off its infrastructure division into a new wholly owned company worth $11 billion, which could be demerged or bring in strategic investors following the completion of the National Broadband Network in 2020.

The new division, labelled Telstra InfraCo, will house the telecommunications providers fixed-line infrastructure, including data centres, non-mobile related fibre, copper, hybrid-fibre coaxial, international undersea cables, exchanges, poles, ducts and pipes. Telstra's plan to split its infrastructure and other businesses, revealed by The Australian Financial Review's Street Talk column in May, will come into effect on July 1.