This agreement paves the way for a faster, cheaper, more efficient rollout of the National Broadband Network, with faster take-up.

This is an important step in the delivery of the single largest nation building infrastructure project in Australian history, which will increase national productivity and help build a stronger economy.

The agreement between NBN Co and Telstra, worth an expected value of $9 billion, provides for the reuse of suitable Telstra infrastructure, including pits, ducts and backhaul fibre and the progressive migration of customers from Telstra’s copper and pay-TV cable networks to the new wholesale-only fibre network to be built and operated by NBN Co.

The agreement means that taxpayers benefit because it reduces the overall cost of building the network and will result in higher take-up rates and revenue for NBN Co and a greater proportion of the NBN rollout will be underground, with less overhead cabling.

Australia’s largest telecommunications company, Telstra, will become a participant in the rollout of the NBN, and is likely to become NBN Co’s largest customer.

Combined with Australian Government public policy reforms, Telstra estimates that the agreement will deliver Telstra a post-tax net present value of approximately $11 billion. The payments by NBN Co to Telstra would be made over a number of years as the rollout progresses.

Through the migration of Telstra customers to the NBN, Australia will benefit significantly from a national wholesale-only broadband network, delivering structural separation of Telstra.

This historic microeconomic reform will ensure Australia finally has a genuinely competitive telecommunications industry which works for all Australian households and businesses and helps to drive long-term productivity growth in our economy.

The Australian Competition and Consumer Commission will review the competition aspects of this agreement as envisaged in the Telecommunications Competition and Consumer Safeguards Bill, which the Government still hopes to pass to provide greater certainty to industry.