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Australian Government to Buy Telstra’s Fiber Network

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WASHINGTON, June 22, 2010 – Australia’s largest telecom firm Telstra has finally come to an agreement with the government regarding its fiber network. Telstra was the only internet service provider in the nation that didn’t support the government’s broadband expansion plans. The firm has reached a deal with the government to decommission its copper network.

The government also will take over the firm’s cable and fiber network and the firm will provide last mile service with backhaul provided by the NBN Co network run by the government. Telstra will receive $9.6 billion for the use of the fiber network.

Telstra Chairman Catherine Livingstone said the agreement “is consistent with the government’s high-speed broadband vision and desired industry structure. This agreement reflects a commitment by all parties to reaching a mutually beneficial outcome for Telstra investors, customers, employees and the industry”

The firm will also begin to bid on spectrum for the deployment of a super fast Long Term Evolution network.

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Rahul Gaitonde has been writing for BroadbandBreakfast.com since the fall of 2009, and in May of 2010 he became Deputy Editor. He was a fellow at George Mason University’s Long Term Governance Project, a researcher at the International Center for Applied Studies in Information Technology and worked at the National Telecommunications and Information Administration. He holds a Masters of Public Policy from George Mason University, where his research focused on the economic and social benefits of broadband expansion. He has written extensively about Universal Service Fund reform, the Broadband Technology Opportunities Program and the Broadband Data Improvement Act

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