headline deal = $11b, page-42

probably explains FINSIA postponing the luncheon seminar at the Sofitel 24/6

guest speaker non other than ...Mr Graeme Samuel ACCC.

In a major breakthrough in protracted negotiations between the government and Australia's largest telco, Telstra will be paid $9 billion to effectively lease its existing infrastructure to NBN Co - the company that will build and operate the network.

The terms of the lease were not disclosed but sources close to the negotiations told AAP the agreement was for a period much longer than 10 years.

Telstra will also be required to decommission its copper network and cable broadband service, and would progressively migrate broadband customers on its copper and cable networks to NBN Co.

The telco will also be paid $2 billion in compensation to cover costs associated with regulatory reform of the sector.

The $11 billion deal is expected to save the government billions in terms of the network's original $43 billion price tag, and see the project completed ahead of its eight-year timetable.