NBN Co has confirmed it expects to delay the launch of its Second Release sites as a consequence of protracted negotiations with Telstra, revealed today.
In a statement the company said delays in reaching a definitive agreement with Telstra was not affecting the progress of NBN Co’s First Release sites, which were nearing the completion of their construction phase, but that Second Release sites would.
“NBN Co has been advising communities with Second Release Sites that both the Telstra deal and the ACCC decision on points of interconnect are now being factored into the timing of future rollouts,” the statement reads.
There are 19 Second Release sites including Brisbane, Toowoomba, Bacchus Marsh, Coffs Harbour and Geraldton.
In the statement NBN Co chief executive, Mike Quigley, said negotiations with Telstra were “progressing well” and that both sides are working through the complex detail of the final negotiation and documentation process.
“A definitive agreement between Telstra and NBN Co will be good for Telstra, good for NBN Co and good for the country,” Quigley said. “It is therefore worthwhile taking the time to get the right outcome.
“A deal will lead to less disruption for the community, and reduce our rollout costs. It is better for the community and better for taxpayers”. As reported by Computerworld Australia, Telstra said today that it would push back its 1 July extraordinary general meeting, which was to allow shareholders to vote on its financial heads of agreement with NBN Co.
“Negotiations continue to progress well, with all parties working together to agree and document the various detailed arrangements required to implement a transaction of this scale and complexity,” and ASX advisory from the company reads.
“A number of matters are yet to be finalised including some that require government approval. Work continues to reach final agreement as soon as possible.”
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