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NBN Co may have to pay Telstra $98b

Telstra could be paid over $98 billion by NBN Co over the next 55 years for infrastructure leases and other fees, according to a report in industry publicationĀ CommsDay.

The article said a May 2013 Goldman Sachs analysis for NBN Co showed the government-owned company building the national broadband network would be forced to pay $98.159 billion in nominal pretax profits to Telstra between financial years 2011 and 2067.

According to the draft document cited by Commsday, $88 billion of this would be from infrastructure leases for Telstra assets like underground ducts, which are needed for the construction of the NBN.

NBN Co's payments would grow to $1 billion per year in financial 2019 from $400 million per year in the year ending June 30. The company would be paying Telstra $2.9 billion per year by 2067.

Though Telstra has characterised its existing deal with NBN Co as offering $11.2 billion in net present value through infrastructure lease and other payments, the exact fees owed to the telecommunications company have never been released.

The then-Coalition's broadband plan was forecast to add an extra 20 per cent, or $2.4 billion, onto the value of Telstra's plan because the company would be able to keep using its hybrid fibre coaxial network, Commsday reported.

Telstra could not immediately comment when contacted for comment. A spokesman for NBN Co said he had not seen the report.