Australia signs $13bln deal with SingTel and Telstra

The network deals are part of NBN’s $38 billion plan to deliver high speed internet to Aussies.

A Reuters report said, “The state-owned NBN will pay Telstra A$11 billion ($11.6 billion) to hand over much of its network to Australia's biggest infrastructure project in decades, while SingTel-owned Optus will receive A$800 million to migrate customers from its fibre-optic network onto NBN.”

The network reportedly will require total capital expenditure of A$35.9 billion and will need A$40.9 billion in debt and equity. The Australian government plans to put up A$27.5 billion in funding, while the NBN will borrow A$13.4 billion from markets.

The project, according to the report, aims to bring high-speed internet access to more than 90 percent of households using fibre-optic cable, with the rest serviced by wireless or satellite.

View the full report here.