If you thought Telstra geting around $11 billion for its fixed line network and associated assets was a sizeable deal, wait until you hear this: NBN Co may end up paying Telstra an insane $98 billion for the lease of its network between now and 2067 according to a new report by CommsDay.
Under the original deal between Telstra and NBN Co, $11 billion would be paid to Telstra for access to the existing copper network, as well as the shutdown of its HFC networks in existing areas and access to duct and pit infrastructure.
That money was set to be paid in increments as each customer was disconnected from Telstra's network and put onto the NBN. Ongoing payments for leasing duct and pit infrastructure would also factor into it.
The problem with that, according to a leaked Goldman Sachs report sighted by CommsDay, is that the $11 billion represents the post-tax net present value of the deal to Telstra, when actual rental costs could skyrocket over the next 55 years.
The pre-tax value of the payments to Telstra from NBN Co over the next 55 years could go as high as $98 billion.
That's billion with a capital "B". Hoooo boy.
Image via Shutterstock