Australia - National Broadband Network - Telstra

Synopsis

Soon after the Australian Government announced the National Broadband Network in early 2009, Telstra understood that changes were inevitable, and it reacted swiftly. A new management team was appointed led by the new Chief Executive Officer, Mr David Thodey.

Telstra immediately announced its support for the National Broadband Network and its willingness to work together with the government. The company also put its weight behind the trans-sector concept which will be the avenue to generating new revenue. Negotiations were launched with the government to investigate how Telstra could best participate: these negotiations have been very complex and very tough and are continuing. An initial agreement to negotiate further was signed in late 2009, followed by the signing of a heads-of-agreement in 2010.

With the passing of the National Broadband Network legislation in 2011 and the shareholders voting overwhelmingly to approve the NBN plan later that year, the NBN rollout will now be accelerated.

Good progress was also made with the company’s structural separation undertakings.

Companies covered in this report include:

NBN Co, Telstra.

Hot topics covered in this report include:

NBN, structural separation.

Table of Contents

• 1. Synopsis
• 2. Telstra is winning retail market share
• 3. Telstra’s e-health initiatives
  • 3.1 Introduction
  • 3.2 Royal Australian College of General Practitioners
  • 3.3 High Definition rural e-health services
• 4. Telstra and government agree on NBN future
  • 4.1 Heads-of-agreement (HoA)
  • 4.2 Analysis of the HoA
• 5. Telstra Structural Separation Undertaking
  • 5.1 Telstra’s initial undertaking
  • 5.2 Telstra’s final undertakings well-received
• 6. analysis
  • 6.1 Transforming the company
  • 6.2 BuddeComm and Telstra
• 7. Related reports

• Table 1 - Total payments to be made to Telstra
• Table 2 - NBN deal valuation cash flows ($)