NBN Co, Telstra and Optus reach deal for copper and HFC networks

A DEAL struck by the government and Telstra will see taxpayers spending $11 billion to buy back the copper network the Howard government sold last century.

Nature strips and driveways need to be dug up to lay fibre optics.

TONY Abbott and Malcolm Turnbull have officially signed a deal to buy back Telstra’s $11 billion copper network. A network the Howard government sold to Telstra last century.

Alongside the Telstra agreement, NBN Co has taken ownership of Optus’ HFC cable network valued at “substantially the same” as the two company’s $800m 2011 deal.

Both arrangements will now allow the government to rollout its new multi-technology plan for the NBN.

Under Labor’s previous plan, the government was to pay Telstra $11 billion to decommission the copper network to allow the rollout of a fibre to the premises network.

However, the new arrangement will see the copper network now used in places where the government will be rolling out its fibre-to-the-node network. Included with the ownership of the copper network, NBN Co is now responsible for the ongoing maintenance and operation of the ageing technology.

Telstra’s HFC cable network is also included with the deal, while Telstra will still be delivering Foxtel over the network.

NBN Co CEO Billow Morrow said that the new agreement will shave “years” off the old NBN rollout schedule.

“In the last six years, we have connected 300,000 users. In the next six years, we want to scale up to 8 million users,” Morrow said.

He also praised the fact that the under the new agreement, lawns would no longer have to be dug up, which they previously needed to be so that fibre could be laid.

Shadow Communications Minister, Jason Clare commented on “Tony Abbott’s Christmas present to Australia”, saying:

“Merry Christmas Australia…Today Tony Abbott has bought back the copper network that John Howard sold last century. To keep it working he is going to have to spend billions of dollars over the next decade – and all Australia will get from it is a second-rate NBN.”

To see if the NBN is heading your way any time soon, check out NBN Co’s rollout map.