NBN Co's Telstra bill could hit $98 billion

Goldman Sachs advises NBN Co would have to pay Telstra $98.157 billion between 2011-2067

Telstra could reap up to $98 billion from NBN Co in lease payments for ducts and other telecommunications infrastructure, according to a Commsday report.

The report said NBN Co could be liable to pay more than $98 billion dollars in total nominal pre-tax payments to Telstra over 55 years.

The is according to advice given to the NBN Co by Goldman Sachs in May last year.

The confidential advice stated NBN Co would have to pay Telstra $98.157 billion between 2011 and 2067.

The majority of this, about $88 billion, would be for infrastructure leases covering ducts, dark fibre, rack space and conduits.

The report said the payments to cover Telstra's copper footprint would rise from $400m annually this year, to $1 billion in 2019, to $1.6 per year by 2042 and $2.9 billion by 2067.

According to the draft document cited by Commsday, the net present post-tax value to Telstra from the definitive agreement with NBN Co was worth $11.72 billion in May last year.

"Analysis of what was known then of the Coalition’s policy estimated that it would add $2.4 billion or 20 per cent to the value of the agreement to Telstra if the then-Opposition could implement its plans in government," the document said.

"This uplift was based largely on Telstra’s increased value from its ability to retain and operate its HFC network for broadband services."

The value of Telstra's deal with NBN Co to lease infrastructure has long been reported as being a net-present value of $11.2 billion.

Newly appointed NBN Co chief executive, Bill Morrow, will deliver the company's third quarter financial briefing on Wednesday.