Australian government and Telstra agree to work together

A potential deal was recently announced between the federal government and Telstra, although the wording of this agreement is rather vague, but this will mean that there will no longer be any open hostility between the two groups.

Analysts believe that the announcement by David Thodey of “flattish” revenue, which was lower than expected, shows how difficult things are for Telstra, and when combined with the pressure that has been put on it by both the market and Canberra has led to the friendly conversations of an agreement on “terms of engagement.”

The cost of participation in the new fibre broadband network that is being deployed by the federal government is one of the big problems that Telstra face at the moment.

The migration of Telstra customers from the copper-based network that it currently uses because it cannot compete with the new fibre network and will therefore be closed down, and the terms on which ducts and exchanges must be leased out by Telstra so that the deployment of fibre-optics to individual homes will be possible for the NBN Co are two of the issues that analysts believe the agreement is concentrating on.

A lot of complicated negotiating will still be required and some of it should be constructive according to the NBN Co, Telstra and Stephen Conroy, the Federal Communications Minister.

In a recent statement regarding the future negotiations Senator Conroy said “While there are many complex issues still to be resolved before any final agreement is reached, I remain optimistic that both parties can find a mutually acceptable outcome.”

He went on to add “The update on progress made today by Telstra and NBN Co demonstrates that both parties continue to work constructively.”

Source – Domain-B