Tuesday, December 3, 2013

NBN Co advised against buying Telstra’s copper

NBN Co advised against buying Telstra’s copper: "Former NBN Co executives urged the incoming Coalition government to rent, rather than buy, Telstra’s copper network as part of a plan to change the national broadband network rollout.

An analysis of the Coalition’s broadband policy by the company, and obtained by Fairfax Media, warned it could be saddled with more than $1 billion in annual maintenance costs and face millions more in technology upgrades if it took control of the existing copper network.

The Coalition government is planning to connect nodes on street corners with fibre optic cabling and use the ageing phone lines to roll out faster broadband to homes and businesses the rest of the way.

It is currently attempting to renegotiate the $11.2 billion agreement with Telstra to gain access to the network, with Communications Minister Malcolm Turnbull indicating a preference for buying the assets. But NBN Co said Telstra should maintain control of the copper network, and continue to repair it, while leasing it to NBN Co."

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