The technology switch embodied in the $36 billion national broadband network (NBN) could lead to significant job losses, according to giant telco Telstra Corporation.

Telstra has sealed an $11 billion agreement with the federal government that would gradually phase out the telecommunication firm's copper network to make way for the NBN's nationwide roll out of its fibre optic lines.

Appearing before a joint parliamentary committee, Telstra group managing director of corporate affairs Tony Warren revealed on Monday the likelihood that thousands of technicians under the company's employ could be rendered redundant or not suited with existing work details under the NBN regime.

"As we migrate customers to the NBN and decommission our copper access network, the network maintenance task that we are currently doing will diminish, with consequences unfortunately for our workforce," Warren was quoted as saying by the Australian Associated Press (AAP) as saying.

He explained that the newer technology governing NBN's fibre network requires lesser number of maintenance workers as compared to the compared to the copper network, which will be totally shut down once the migration has been completed.

The company has identified some 6500 staffs that will be affected by the technology transition, Warren said, and all of them "will be retrained, and hopefully we will have positions for them."

The whole process of retraining, according to Telstra, will be financed under the Retraining Fund Deed (RFD) that the company will establish, with the federal government injecting some $100 million to the program.

The RFD will run for eight years, Warren told the Parliament, and its prime objective is to
"to retrain specific employees, support the availability of an appropriately trained workforce for the NBN and to retrain Telstra staff facing redundancy due to the NBN."

The program will at least enable certain employees to acquire skills that Telstra said would allow them to effectively explore the employment market outside of the company.

"If they are retrained and we don't have positions for them, then clearly they will have skills that will be valuable in the market ... At least we know that that they are going out into the employment market with the skills they need. We hope it eases the transition," the Telstra executive said.

Warren clarified too that Telstra is hard at work in readying measures that would address the learning, training and staff development needs of all Telstra employees under the new set up, stressing that apart from the $100 million earmarked by federal authorities, the company will dig deep on its own pocket.

The company also addressed fears that the telecommunication industry's equilibrium might be greatly disturbed in the event that the national government leadership is overhauled come the national elections next year.

The Coalition, tipped to win the 2013 national race, has been critical of the NBN and has pledged to ditch the program once elected.

Warren said that Telstra has seen major revisions in policies that normally attend changes in the federal level and the company "has shown in the last couple of years that it is able to deal with the government policy of the day."

Telstra's foremost concern, according to Warren, is to provide ample protection for its employees, shareholders and customers in all forms of transitions, which include change of governments.

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