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Australia - National Broadband Network - Telstra

Synopsis

Soon after the Australian government announced the national broadband network in 2009 Telstra accepted that changes were inevitable, and it reacted swiftly. A new management team was appointed and the company announced its support for the NBN and its willingness to work with the government. The company also put its weight behind the trans-sector concept that will be the avenue to generating new revenue. In particular they have since shown increased interest in cloud computing.

In 2012 Telstra finalised an $11 billion contract with the government, which saw the company making infrastructure assets available to NBN Co and agreeing to switch off its copper network after the NBN has become available. It also entered the NBN retail market.

These massive changes propelled the company into a transformation process which saw it competing aggressively with its rivals, particularly in the mobile market. It has ramped up its customer service and introduced innovative new services. So far so good, as the company has become one of the most financially successful telcos among the developed economies.

Key developments:

NBN, structural separation, creation of an Independent Telecommunications Adjudicator, customer migration from HFC network.

Companies mentioned:

NBN Co, Telstra, FOXTEL, Sensis.

Table of Contents

  • 1. Synopsis
  • 2. Telstra and government agree on NBN future
    • 2.1 Two years of negotiations
    • 2.2 Analysis of the agreement
    • 2.3 Definitive Agreement signed and sealed
  • 3. Telstra Structural Separation Undertaking
    • 3.1 Telstra’s initial undertaking
    • 3.2 Telstra’s final undertakings analysis
  • 4. Analysis
    • 4.1 Transforming the company
    • 4.2 Pre NBN competition
  • 5. Telstra’s e-health initiatives
    • 5.1 Introduction
    • 5.2 Royal Australian College of General Practitioners
    • 5.3 High Definition rural e-health services
    • 5.4 Cloud computing initiative
      • 5.4.1 Analysis of Telstra’s cloud coup
      • 5.4.2 Clayton cloud centre
  • 6. Related reports
  • Table 1 – Total payments to be made to Telstra – 2012 - 2020
  • Table 2 – NBN deal valuation cash flows

Focus Report profile

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"Paul, May I congratulate you on a very successful and enjoyable afternoon with the Minister. In providing the roundtable discussions between government and industry, it highlighted the strong interest by stakeholders in Broadband and its implementation but it also presented us with other issues and opportunities that we need to address."

Dominic Schipano, CITT

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