Telstra signs $390m NBN design contract

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Telstra signs $390m NBN design contract

Works to finalise separate construction, maintenance contract.

Telstra has signed a $390 million deal with NBN Co to provide planning and design services for the national broadband network over the next four years.

The bundle of work comes as a result of the renegotiated definitive agreements between Telstra and NBN Co, under which Telstra handed over its copper and HFC networks to the infrastructure builder.

Telstra's planning and design services will help determine how the handful of various technologies under the multi-technology-mix NBN - which is to be made up of fibre-to-the-premise, fibre-to-the-basement, fibre-to-the-node and HFC - will be rolled out.

Telstra said the $390 million value of the deal would be subject to the rate of NBN rollout progress and the outcome of future pricing reviews.

"We’re pleased to have won this work in a competitive market and we look forward to working with NBN Co to help it prepare for the construction of the next phase of the NBN,” Telstra chief operations officer Kate McKenzie said in a statement.

Telstra is also expected to announce a further contract with NBN Co for construction and maintenance services.

Alongside the $11.2 billion definitive agreements, new $390 million design contract and the soon-to-be-announced construction and maintenance deal, Telstra will also receive disconnection payments from NBN Co as it shifts customers off its own network and onto the NBN.

The telco also receives payment from NBN Co for access to its pits, pipes and ducts.

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