Telstra Corporation Limited (ASX:TLS) has finalised definitive agreements with the federal government and NBN Co for the rollout of the National Broadband Network (NBN).
Australia’s largest telco says the deal is expected to provide about $11 billion over the long term life of the agreements.
Under the agreement Telstra will also retain ownership of its Hybrid Fibre Coax cable network and its share in Foxtel.
CEO David Thodey says the agreements are expected to contribute to free cashflow generated in the medium term, greater financial flexibility and a stronger balance sheet.
The agreements are also expected to help to offset the decline in free cashflow as customers migrate onto the NBN.
Telstra recorded a net profit of $1.5 billion for the first half of its 2012 financial year.
