Telstra To Reap $10 Billion Over NBN, Reveals 5G Plans
Speaking at the company’s investor day in Sydney on Thursday morning, Telstra has outlined a bright future for shareholders.
The telecom said it expects to receive up to $8 billion from NBN in coming years, with access payments set to add a further $1 billion annually.
“The balance of one-off payments will generate post-tax free cash flow of $5 billion over the next four to five years,” chief executive Andrew Penn said.
Shares in the company jumped 2.33 per cent to $4.83 in response to the news.
Telstra also revealed an internal program called Network 2020 that will Telstra’s infrastructure modernised and shut down older tech, such as the 3G mobile network.
Chief operations officer Brendon Riley says that Network 2020 will see 1Gbps mobile signals in key central business districts by 2019 alongside a roll-out for a 5G mobile network.
These measures are intended to accommodate an expected fivefold growth in customer data consumption over the next four years.
As part of the initiative, Telstra’s aging 2G network will be shut down over the coming weeks.
The company’s 3G network will meet the same fate in 2020.