Telstra will participate in the rollout of the national broadband network after finalising its $11 billion agreement with the Federal Government and NBN Co.
"Today, we have concluded almost three years of intense and complex negotiations, with multiple parties, and we are very pleased we have delivered this positive outcome for our customers, employees and shareholders," Telstra chief executive David Thodey said in a statement on Wednesday.
Telstra will receive approximately $11 billion over the life of the agreements, which ensure the telco's infrastructure will be utilised by the NBN.
"The agreements are expected to also contribute to free cashflow generated in the medium term, provide us with greater financial flexibility and a stronger balance sheet, and help to offset the decline in free cashflow expected as customers migrate onto the NBN," Mr Thodey said.
Telstra will retain ownership of its Hybrid Fibre Coax (HFC) cable network and its 50 per cent share in Foxtel.
The comments from Mr Thodey follow the Australian Competition and Consumer Commission's (ACCC) acceptance in February of Telstra's structural separation undertakings.Those undertakings outlined how the telco would split its retail and wholesale businesses during the NBN's rollout.
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