After two years of negotiations, Telstra Corporation Ltd (ASX:TLS) has announced that it has signed an $11 billion deal with NBN Co and the Federal Government that will see the roll-out of the National Broadband Network.
Under the agreement Australia’s largest telco will disconnect its copper network and join the roll-out of the $36 billion National Broadband Network over the next ten years.
The deal is still reliant on approval from shareholder’s and the Australian Competition and Consumer Commission, to structurally separate the telco.
A vote for shareholders is scheduled to be held at the company’s annual general meeting on 18 October.
CEO David Thodey has advised, due to the planned roll-out timeline of the network, no material impact is expected in this year’s financial results.
In the first half of the 2011 financial year Telstra generated a net profit of $1.2 billion.
