Monday 21 June 2010

The Telstra war is over !

Common sense finally prevailed and the war between Telstra and the Federal government has been settled. Subject to approval by Telstra shareholders - which is a foregone conclusion - Telstra's copper cable network will be integrated with the National Broadband Company ( NBN ).

Telstra will received $ 11 billion compensation, plus a further $2 billion for separating it's wholesale and retail divisions - which was a requirement of the Federal government that was bitterly opposed.

The settlement is a win-win situation. The Federal government will be able to implement the broadband rollout years faster than going it alone - and it will make a massive saving on the overall cost.

Progressively the old fashioned copper network will be replaced by cable, but this will be sited in Telstra's underground ducting, saving the cost and chaos of digging up the nation's streets and highways.

For the average computer user it means that broadband will be connected years ahead of the previous schedule - and for a lot less money !

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