Australian government launches tender for advisors on revised deal between Telstra and NBN Co

4 Nov 2013

Australia’s federal government has issued a tender for commercial and strategic advisors as it looks to ensure a revised deal is reached between fixed line incumbent and NBN Co, the company overseeing the National Broadband Network (NBN) project. According to the Australian Financial Review, tender documents published by the state note that the advisors will be tasked with guiding the government on how to implement the renegotiated contract between Telstra and NBN Co.

With Telstra having finalised an AUD11.2 billion (USD10.43 billion) agreement with NBN Co under which the latter would gain access to the incumbent’s network of underground pits and ducts, this deal now requires renegotiation due to the new government’s decision to utilise fibre-to-the-node (FTTN) technology for the NBN project. ‘The Board of NBN Co Limited … has been tasked to conduct the Strategic Review announced by the Government and implementing revised arrangements between Telstra, NBN Co and the Commonwealth,’ the documents state, adding: ‘The Commonwealth … seeks to engage a commercial and strategic advisor to provide it with commercial advice in relation to implementing revised arrangements between Telstra, NBN Co and the Commonwealth.’ The winning bidder will be required to deliver its advice on the new arrangements by 30 June 2014.

Australia, NBN Co, Telstra (incl. Belong)