Telstra shares soar on NBN deal

Telstra shares soar on NBN deal

Investors have reached warmly to news that Telstra (ASX:TLS) has finally reached a heads of agreement with the federal government that will see the telco giant’s infrastructure included as part of the National Broadband Network (NBN).

The deal is reportedly worth $11bn and will allow the government to roll out high-speed broadband services sooner and at a significantly lower cost. It will also avoid duplication of Telstra's fixed network, turning an asset that had been declining as consumers moved to mobile and wireless into a revenue earner.

The deal ushers in a new era of co-operation and finally closes the door years of a highly public battle between Telstra’s former CEO, Sol Trujillo and the Australian government. Changes still need to be approved by Telstra shareholders.

Telstra shares opened 21c or 6.5% higher at $3.44 today and hit a peak of $3.46, but gave ground during the day to close at $3.34

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Tags TelstraNational Broadband Network (NBN)

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