The switch to the National Broadband Network is a double edged sword for Telstra. The agreement with the Government’s NBN Co. included a preferred model, which would allow a progressive transition from the telco's copper access network to a fiber-to-the-premises (FTTP) NBN. In return for this up-gradation, the Government has persuaded Telstra Corporation Ltd to divest its cable broadband network and its half-share in Foxtel. The deal is important to Telstra as it involves supplying a broadband network to 90 per cent of Australian households with broadband access speeds of up to 100Mbps.

The entire situation is in a deadlock right now. Both the Government and the telco are refraining from any comments. Telstra’s statement declared that any final agreement was still far away, negotiations are, however, continuing. The Government’s statement declared that it will be in close consultations with the Australian Competition and Consumer Commission on the issue.

For the moment, NBN Co. has an invite to Telstra’s premise implementation in Point Cook, Victoria, where 1500 residential customers will switch from copper access network to FTTP.

Telstra meanwhile has disclosed its sales forecasts for 2010 where it expects negative sales revenue in the first half and flat sales overall as compared to last year. The telco reaffirmed its other guidance measures, expecting a low single-digit growth in earnings before interest, tax, depreciation and amortisation (EBITDA).