Australia's Telstra has signed non-binding deal valued at $11 billion  with NBN Co, in this deal Telstra has agreed to migrate its copper and cable broadband networks to Government-owned NBN Co.

NBN Co today & Telstra have reached a Financial Heads of Agreement that would provide access to Telstra facilities and the progressive migration of Telstra traffic onto the National Broadband Network, subject to regulatory approval

Telstra also said it has received a written agreement from the prime minister that it will be able to participate in LTE spectrum auctions under the deal.

“This is a sound outcome for NBN Co because when finalised it can maximise the use of existing infrastructure and accelerate the roll out of its network,” NBN Co Chief Executive, Mike Quigley, said today.

“It also means Telstra is likely to become NBN Co’s largest customer as it progressively migrates its voice and broadband traffic to NBN Co’s wholesale-only, open-access network, providing greater certainty about future revenues.

NBN Co was established in April 2009 to design, build and operate a wholesale-only national high-speed broadband network for all Australians. In the fibre footprint, the network will deliver broadband speeds of up to 100 Mbps, subject to the retail plan chosen.

NBN Co will pay Telstra for migration of traffic on to the NBN and the decommissioning of its network.

On Friday Telstra & Nokia Siemens Networks (NSN) had announced that they have achieved a peak download speed of 100Mbps and upload speed of 31Mbps over a 75km distance using LTE technology. 

Trial was conducted between Mount Hope and Mount Burrumboot in central Victoria.