Telstra to be paid to fix copper network it sold to NBN for $11bn under new contract

(A national broadband network (NBN) satellite that will provide high-speed broadband to more than 200,000 homes and businesses in the most remote areas of Australia. NBN has signed two contracts with Telstra. Photograph: AAP/NBN0

Telstrahassecuredtwocontractsfromthenationalbroadbandnetwork(NBN),withcombinedfirst-yearrevenueofabout$80m.

ThetelecommunicationsgroupisalsonegotiatingathirdcontractwithNBNtocoverdesign,engineering,procurementandconstructionmanagementofthenetwork,andtheagreementislikelytobefinalisedinearly2016.

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Thenewcontracts,announcedonMonday,includeathree-yeardealtofixfaultsonthecoppernetworkandundertakesomenewconnectionsforservicesyettobemovedtoNBN.

TelstrawillalsofunctionasoneofthenetworkoperationsandmaintenanceserviceproviderstoNBNunderaseparatefour-yearcontract.

Theworkwillinvolvefixingfaultsandconnectingnewservicesonthenetworkforfibretothenode,fibretothepremises,fibretothebasementandhybridfibrecoaxialtechnologiesonceacustomerhasswitchedtoNBN.

ThenewcontractsmeanTelstrawillbepaidtorepairthecoppernetworkitsoldtoNBNina$11bndealin2011.

InAugust,itwasrevealedthecostofthenationalbroadbandnetworkcouldblowoutby$15bn.