Telstra has been awarded an $11 billion deal to provide broadband to more than 10 million homes in the north-west of the state.
The deal, which will see the company acquire Telstra’s internet network, will also give it the ability to offer broadband to about 2.5 million homes, it said.
The $11.2 billion deal is the largest in Australia’s history and is worth more than the total value of all Telstra assets.
The agreement is likely to be ratified in the coming weeks and Telstra will receive $4.2 million a year for 20 years.
The company is expected to make a decision on the purchase in the first quarter of next year.
Telstra, which is in the process of rolling out a fibre-optic network to the northern and central parts of its network, was one of the main proponents of the deal, despite the fact that the price tag was significantly lower than what it was seeking for its own network.
The agreement with Telstra is the result of Telstra working with several of the regional telecommunications companies that already have broadband connections to the state’s north-western and central regions, including iiNet, Telstra Fibre, Optus and Westpac.
Telstra’s purchase of the broadband network comes as the NBN rollout moves on.
NBN Co, which had originally planned to build the fibre-to-the-node (FTTN) network to provide a cheaper alternative to Telstra that will be deployed to the north, has started to make further cuts in the cost of its rollout, meaning it may be forced to seek the same pricing as Telstra in order to fund the network.
However, there is still a chance that the NBN could be rebranded as the National Broadband Network, and that will require more funding from Telstra.
The NBN will cost Telstra about $70 billion, with the purchase of Telco’s copper network to build a network to be shared with Telus.
If it is rebranded the NBN, Telcos will still be able to use their existing copper network.
But the company’s copper networks will also be able do some of the work that it does on the FTTN network, which it is still building.
Its copper networks in Victoria and New South Wales are the two most popular, with about two-thirds of households using them.
With the NBN on the horizon, Telus has said it is looking at increasing its copper network network from two to three times as much as the two-to three-times-as-much it is now, but the company said it was not yet sure when this would happen.
While the deal with Telsa was announced in April, it was the result on a year-to.date basis of a $15 billion takeover of Telnet by Telstra by the Australian Communications and Media Authority (ACMA).
It was also the result after months of negotiations between Telstra and the Australian Competition and Consumer Commission (ACCC) which ruled that the takeover was unlawful.
ACMA said it had previously warned Telstra to be prepared for a challenge in the Federal Court and that it would not be prepared to stand by and allow it to take its business elsewhere.