For example, under the new deal the cost of remediating Telstra’s ducts and pits onto the government-owned NBN Co gets a key potential liability off the books for Telstra, and while chief executive David Thodey was coy about the numbers in an analyst briefing yesterday afternoon, he fairly crowed the result was “unquestionably better for shareholders”.
The dollar figures being bandied about are confusing because they are given in net present value terms — i.e. the value of expected future income — which is a familiar concept for many in the financial community but meaningless for many. This NBN-Telstra deal is really worth more like $100 billion, which is the total amount that will be paid to Telstra over the next 30-plus years for access to its infrastructure and, after yesterday, additional design, build and maintenance work.
Just had to bold some of that text. Telstra sells POS copper network back to government and now gets paid to maintain the network they never maintained.. this is a fantastic deal, if you’re Telstra.