Share
- Release Date: 07/03/12 12:32
- Summary: GENERAL: TLS: Telstra finalises $11 billion NBN agreements
- Price Sensitive: No
- Download Document 2.4KB
TLS
07/03/2012 10:32
GENERAL
REL: 1032 HRS Telstra Corporation Limited
GENERAL: TLS: Telstra finalises $11 billion NBN agreements
Telstra finalises $11 billion NBN agreements
7 March 2012 -Telstra today is pleased to announce it has finalised its
Definitive Agreements with NBN Co and the Commonwealth for Telstra's
participation in the rollout of the National Broadband Network.
CEO David Thodey said the agreements and associated Government policy
commitments were expected to provide Telstra approximately $11 billion in
post-tax net present value1 over the long term life of the agreements.
"As was detailed in the Explanatory Memorandum, compared with other
realistically available options this outcome should deliver a better overall
financial outcome, a more stable regulatory environment and greater strategic
flexibility, enabling Telstra to maintain a strong focus on our key areas of
growth," Mr Thodey said.
"The agreements are expected to also contribute to free cashflow generated in
the medium term, provide us
with greater financial flexibility and a stronger balance sheet, and help to
offset the decline in free cashflow
expected as customers migrate onto the NBN."
Telstra noted the Commonwealth's $190 million post-tax NPV commitment to
Telstra under the Information
Campaign and Migration Deed - one of the Definitive Agreements. A cash
payment2 is expected this year and
will be amortised over three years as Other Income as costs are accrued. This
payment is outside Telstra's
guidance for fiscal year 2012.
Mr Thodey confirmed that with the finalisation of the Definitive Agreements,
Telstra's Structural Separation Undertaking (SSU), recently accepted by the
Australian Competition and Consumer Commission (ACCC), had also come into
force.
"The Minister has made decisions that enable Telstra to retain ownership of
our HFC network and our share in FOXTEL(TM), which along with ACCC approval
of the final Migration Plan, were pre-conditions to the SSU coming into
force.
"Today we have concluded almost three years of intense and complex
negotiations, with multiple parties, and we are very pleased we have
delivered this positive outcome for our customers, employees and
shareholders.
"With improving customer service and a very strong overall value proposition
we are well placed to retain and win customers as the industry transitions to
the NBN."
End CA:00220434 For:TLS Type:GENERAL Time:2012-03-07 10:32:42
