Telstra To Pocket $47B Out Of NBN Deal
Telstra is set to score not just $11 billion from its structural separation deal with the Government and NBN Co – think more like $47 billion, says finance commentator Alan Kohler.
He calls the $11 billion figure “a lesson in spin doctoring”, in a report on The Drum, the ABC’s blogging site.
He comes at the $47 billion figure by noting that Telstra is to receive roughly $750 million a year for 30 years, increasing each year at the rate of CPI, for access to Telstra’s infrastructure (total, $37.5 billion) and roughly $750 million a year for 10 years, as copper network “decommissioning” payments – (total $9.6 billion).
On the other hand, he says, that over 20 years Telstra will pay NBN Co a total of about $90 billion to connect users.
” So – $90 billion cash out; $47 billion cash in â€¦ Is that a good deal? It’s impossible to tell. The cash in is actual revenue; the cash out is a business cost on which Telstra will make a profit margin.”
Kohler suggests Telstra should sell its infrastructure rental stream to a superannuation fund: “a 30-year income stream like that is a perfect asset for a super fund, and very hard to find.”
And he adds: “Even if the infrastructure is not sold, the cash stream will make Telstra the richest media and telecommunications firm in Australia by a long way. It could, and probably will, become the nation’s dominant media company.”