The Australian government has struck a deal to pay telecom company Telstra A$11bn ($11.6bn) for using its infrastructure, as a part of its project to build a $38bn national broadband network.
Under the agreement between Telstra and the state-owned National Broadband Network (NBN), the project can use Telstra’s fiber network and ducts across the country.
The government has welcomed the deal.
"Having access to Telstra’s infrastructure is going to enable the rollout to happen in a faster and more streamlined way," Prime Minister Julian Gillard told reporters.
Telstra services will migrate to the NBN over its expected 10-year construction, as a part of the deal. He telecom company will also provide NBN with access to other infrastructure for upto 40 years.
