Australian Government to Buy Telstra’s Fiber Network

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.