The Claim
“Paid Telstra $80 million to fix the copper network which Telstra sold to the government.”
Original Sources Provided
✅ FACTUAL VERIFICATION
The claim is factually accurate. In December 2015, NBN Co signed two contracts with Telstra worth approximately AU$80 million in first-year revenue for Telstra to repair faults on the copper network and provide network operations and maintenance services [1][2].
The contracts covered:
- A three-year deal to fix faults on the copper network and undertake new connections for services yet to be moved to NBN
- A four-year contract for Telstra to function as one of the network operations and maintenance service providers to NBN Co [1][2]
The work involved "fixing faults and connecting new services on the network for fibre to the node, fibre to the premises, fibre to the basement and hybrid fibre coaxial technologies once a customer has switched to NBN" [3].
Telstra had indeed sold its copper network to NBN Co as part of an $11 billion deal that was renegotiated in December 2014, allowing NBN Co to take ownership of the copper and HFC networks for use in the multi-technology mix (MTM) rollout [4].
Missing Context
The $11 billion deal was originally negotiated by the Labor Government in 2011. The original deal (valued at approximately $9 billion at the time) was struck under the Rudd/Gillard Labor government, not the Coalition [4][5]. The Coalition renegotiated this deal in December 2014 to accommodate their Multi-Technology Mix (MTM) approach.
The $80 million was maintenance on infrastructure NBN Co now owned. The contracts were for NBN Co to pay Telstra to maintain and repair faults on networks that NBN Co had acquired ownership of - effectively paying the previous owner to fix problems on the government's newly purchased infrastructure [1][2].
The maintenance was necessitated by the Coalition's MTM policy decision. The Coalition government made a deliberate policy choice to use the existing copper network for Fiber to the Node (FTTN) rather than Labor's original Fiber to the Premises (FTTP) plan, which would have decommissioned the copper entirely [6]. This policy choice created the necessity for ongoing copper maintenance.
The copper network was aging and required significant remediation. Leaked documents revealed that NBN Co faced potential costs of up to $641 million to remediate the aging Telstra copper network - far exceeding initial estimates [7].
Source Credibility Assessment
The original source is The Guardian Australia, a mainstream media outlet with a documented center-left editorial stance. Media Bias/Fact Check and AllSides rate The Guardian as "Left" leaning [8][9]. However, this specific article was an Australian Associated Press (AAP) wire report, which is a reputable, generally neutral news agency. The factual claims about the contract values and dates are verifiable from multiple independent sources including ZDNet, iTnews, and parliamentary records [1][2][3].
Labor Comparison
Did Labor do something similar?
Search conducted: "Labor government NBN Telstra deal original contract 2011"
Finding: Labor created the original $11 billion deal. The original Telstra-NBN Co definitive agreement worth $11 billion was actually negotiated and signed by the Labor government in 2011 [4][5]. This deal paid Telstra infrastructure payments ($5 billion), disconnection payments ($4 billion), and Commonwealth agreement payments ($2 billion) [4].
Key distinction: Under Labor's original plan, the copper network was to be completely decommissioned and replaced with fiber to the premises (FTTP). The maintenance contracts would not have been necessary because the copper would not be used. However, the $11 billion payment to Telstra (including for infrastructure access and customer migration) significantly exceeds the Coalition's $80 million maintenance contracts.
The Coalition's MTM policy decision to reuse the copper network (rather than replace it) created this specific situation where the government pays the former owner to maintain infrastructure it now owns [6].
Balanced Perspective
While the framing of "paying Telstra to fix what they sold" appears ironic, the situation requires broader context:
Policy rationale: The Coalition's Multi-Technology Mix approach was designed to deliver the NBN faster and cheaper than Labor's FTTP plan by utilizing existing infrastructure. NBN Co CEO Bill Morrow stated the renegotiated agreement allowed NBN Co to "shave years off the rollout schedule and save billions of dollars at the same time" [4]. Communications Minister Malcolm Turnbull argued the MTM used "leading, cutting-edge technologies and techniques being used by the leading telcos around the world" [4].
Legitimate necessity: When NBN Co took ownership of the copper network in 2014, it required ongoing maintenance to make it serviceable for FTTN deployment. As the original builder and operator of the network, Telstra possessed the expertise, workforce, and systems to perform this work efficiently [2].
Comparative scale: The $80 million maintenance contracts represent a small fraction of the overall $11 billion Telstra deal. Labor's original plan would have cost significantly more in total payments to Telstra while delivering a different network architecture.
Criticism: Opposition Communications Minister Jason Clare criticized the deal, stating the Government had "repurchased the old, out of date copper network" and that "the losers in this deal are millions of Australians. They end up with a second rate NBN" [4].
This is NOT unique to the Coalition - both parties relied on the $11 billion Telstra framework. The maintenance contracts specifically arose from the Coalition's policy choice to continue using copper rather than decommissioning it.
TRUE
6.0
out of 10
The claim is factually accurate - the Coalition government (through NBN Co) did pay Telstra approximately $80 million to repair and maintain the copper network that Telstra had sold to NBN Co for $11 billion. However, the framing omits critical context: (1) the $11 billion deal was originally negotiated by Labor in 2011, (2) the maintenance contracts were necessitated by the Coalition's deliberate policy choice to reuse copper rather than decommission it, and (3) Labor's alternative approach would have avoided copper maintenance but at significantly higher overall cost. The claim presents an ironic situation without explaining the policy trade-offs that created it.
Final Score
6.0
OUT OF 10
TRUE
The claim is factually accurate - the Coalition government (through NBN Co) did pay Telstra approximately $80 million to repair and maintain the copper network that Telstra had sold to NBN Co for $11 billion. However, the framing omits critical context: (1) the $11 billion deal was originally negotiated by Labor in 2011, (2) the maintenance contracts were necessitated by the Coalition's deliberate policy choice to reuse copper rather than decommission it, and (3) Labor's alternative approach would have avoided copper maintenance but at significantly higher overall cost. The claim presents an ironic situation without explaining the policy trade-offs that created it.
📚 SOURCES & CITATIONS (9)
-
1
theguardian.com
Telstra wins two national broadband network deals and is in negotiations for a third, which could be finalised early next year
the Guardian -
2
zdnet.com
Australia's incumbent telco has picked up a deal to design and manage construction within its HFC footprint.
ZDNET -
3
itnews.com.au
Pair also sign MoU for HFC.
iTnews -
4
itnews.com.au
Value of 2011 deal remains intact.
iTnews -
5
itnews.com.au
Updated: Deal to be put to shareholder vote in October.
iTnews -
6
zdnet.com
NBN's actual spend on replacing copper between the node and pillar has been AU$30 million more so far than the cost estimated in October.
ZDNET -
7
news.com.au
News Com
-
8
mediabiasfactcheck.com
LEFT-CENTER BIAS These media sources have a slight to moderate liberal bias. They often publish factual information that utilizes loaded words
Media Bias/Fact Check -
9
allsides.com
Allsides
Rating Scale Methodology
1-3: FALSE
Factually incorrect or malicious fabrication.
4-6: PARTIAL
Some truth but context is missing or skewed.
7-9: MOSTLY TRUE
Minor technicalities or phrasing issues.
10: ACCURATE
Perfectly verified and contextually fair.
Methodology: Ratings are determined through cross-referencing official government records, independent fact-checking organizations, and primary source documents.