by Will Irving Group Executive -Telstra Wholesale
As part of our new strategy we will be establishing Telstra InfraCo, a new standalone business unit within Telstra.
Telstra InfraCo will be responsible for key fixed network assets and for managing our relationships with our more than 200 wholesale customers and our long-term strategic relationship with nbn co.
It will be accountable for our copper and HFC networks; all our fibre network that is not dedicated to supporting mobiles; all ducts, pits and pipes; property including exchange buildings and data centres; and international and domestic subsea cables. These assets will be combined with Telstra Wholesale and the teams in Telstra Operations that provide services to nbn co.
At establishment on 1 July, this new Business Unit will control assets with a book value of approximately $11 billion and have annual revenues of more than $5 billion from internal and external sources.
Connectivity has never been more in demand and as such our infrastructure has never been more important to our customers.
Telstra InfraCo's mission is to be the most efficient fixed telco infrastructure provider in the market. It will serve three customer segments: Wholesale in Australia; nbn co; and the broader Telstra covering Consumer and Small Business and Enterprise. It will offer the full range of wholesale products that Telstra offers today, while also focusing on improving infrastructure service delivery to benefit all our customers across nbn co, wholesale and the rest of Telstra.
By putting our fixed assets together in a single BU we are establishing the right structure to give greater focus on this part of Telstra's business. It will also provide greater visibility to the market of the value of this business and create more optionality for the period after the nbn rollout is complete.
Separate to Telstra InfraCo, Telstra will continue to operate an integrated mobile business, with key assets including spectrum and towers, and our Network Applications and Services business.
Responsibility for key operational activities, like actively managing the traffic on our fibre networks, will continue to be with Telstra's Operations group, which manages it today. Indeed, while InfraCo will share responsibility for the equipment used to power services carried over the infrastructure it controls - including copper, HFC and fibre networks - all network management functions will continue to be undertaken by Telstra Operations, so that we continue to run one integrated network from a traffic and managed services perspective.
Effective from 1 July 2018, we established a standalone infrastructure business unit, Telstra InfraCo, as part of our new T22 strategy announced on 20 June 2018.
Our 1H19 financial statements will contain detailed segment reporting for Telstra InfraCo, the results of which will be regularly reviewed by management. The new segment will comprise:
Consistent with information presented for internal management reporting purposes, the result of each segment is measured based on its EBITDA contribution except for Telstra InfraCo which includes the inter-segment charges. EBITDA contribution excludes the effects of all inter-segment balances and transactions with the exception of the transactions referred to in the table. As such, only transactions external to the Telstra Group are reported for all segments except for Telstra InfraCo.
Our approach to Telstra InfraCo segment reporting is to present its profitability as if it was a standalone business unit with no offsetting impact to the other segments to reflect how performance is managed internally.
Year ended 30 June 2018 Telstra Consumer Enterprise Operation AllOther Subtot InfraCo Eliminat Total Revenue from external customers $14,629m $ 8,217m $ 89m $ -20m $22,915m $3,096m $ 0m $26,011m Revenue from transactions between InfraCo and other $ 0m $ 0m $ 0m $ 0m $ 0m $2,178m $-2,178m $ -m Total revenue from external customers and InfraCo $14,629m $ 8,217 $ 89m $ -20m $22,915m $5,274m $-2,178m $26,011m Other income $ 54m $ 32m $ 162m $ 2,572m $ 2,820m $ 211m $ 0m $ 3,031m Total income $14,683m $ 8,249m $ 251m $ 2,552m $25,735m $5,485m $-2,178m $29,042m Share of net profit from joint venture $ 0m $ 2m $ 0m $ -24m $ -22m $ 0m $ 0m $ 22m EBITDA contrib$ 6,970m $ 3,216m $ -3,066m $ 501m $ 7,621m $3,407m $ -907m $10,121m Depreciation $ 0m $ 0m $ 0m $ 0m $ 0m $ 0m $ 0m $-4,470m Group EBIT $ 0m $ 0m $ 0m $ 0m $ 0m $ 0m $ 0m $ 5,651m Finance costs $ 0m $ 0m $ 0m $ 0m $ 0m $ 0m $ 0m $ -549m Group profit before tax $ 0m $ 0m $ 0m $ 0m $ 0m $ 0m $ 0m $ 5,102m
Total restated FY18 segment results reconcile to note 2.1 to the financial statements. However, the following items have been