Negotiating the NBN


  1. Announce you have a kitty of AU$4.3 Billion, as a part of $43b over 8 years to create a wholesale, fibre-to-the home network.
  2. Get the whole internet (writ large) industry excited with the measure; yet most question the amount.
  3. Timing: just around the time the Managing Director of Telstra is changing. New MD, new culture
  4. Do not announce plans, technical details nor any details at all.
  5. The exposure of “deep pockets” by the Government forces Telstra (and Optus, and other existing fibre owners) realise that the Government is serious
  6. The Government buys (not builds) part of the existing commercial infrastructure; and exchanges a part of the 49% private ownership to these private organisations.
    1. Note: There are about 10.4 billion listed shares of Telstra outstanding; current “fair market value” is $4.03. This is $42 billion dollars.
    2. Note that Telstra is already part-owned by the Future Fund
    3. Telstra would probably retain part ownership of the new entity, and keep 100% of its Retail network.
  7. Telstra relinquishes their wholesale/infrastructure into the new entity;
  8. End result: a Nationalised Broadband Super-highway; just like roads (at least a majority of the roads). Just what the non- neo-liberal Labor Government wants.
  9. It may not actually cost $43 billion, nor take 8 years. This may just be a smart negotiation tactic


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