Telstra Corporation Ltd has confirmed it has reached agreement with the federal government to progressively disconnect its copper network and participate in the rollout of the national broadband network (NBN).
Telstra says the agreement will deliver approximately $11 billion in replacement revenue through disconnection payments, and new revenues through payments for access to its infrastructure.
There will be no upfront payment, but rather payments over many years, it said.
The federal opposition says contracts expected to be announced by the federal government on Thursday will make it more difficult to deliver its alternative broadband plan for Australia.
The government's deals with Telstra and Optus will help pave the way for the rollout of the $35.9 billion national broadband network (NBN).
Telstra will receive $11 billion to decommission its copper network, shift customers to the NBN and allow access to its cable ducts.
Sing Tel Optus is expected to receive $1 billion to transfer its customers to the NBN and shut down its cable network.
The opposition says the government is getting rid of competition in the market.
Broadband spokesman Malcolm Turnbull said on Thursday the government shouldn't be looking to go back to "ground zero".
"The way the government is going about this is very ineffective in the sense that it's spending taxpayers' money unwisely," he told ABC Radio.
"What we want to do is get the broadband objective delivered at a lower cost and that would involve at least in part redesigning the network.
"These contracts will make that more difficult but I don't believe they'll make it impossible."
Mr Turnbull said there was no suggestion anything would be "destroyed or ripped up or terminated" as a result of the deals with Telstra and Optus.
The coalition wants to use mix of technologies to deliver fast but affordable broadband.
It insists it's not cost-effective to "roll fibre into every single home and apartment in Australia".
Share
