Australian state-owned company NBN, the company building Australia’s Broadband Network, announced two distinct agreements including a non-binding memorandum of understanding (MOU) that further engage the country's experts to manage the design and construction and, to operate and maintain the company's growing multi-technology mix.
NBN signed new agreements for the provision of ‘operate and maintain’ services for the fixed line technologies as activations accelerate across the country.
To further leverage Australia's industry expertise and help simplify the process of upgrading and transitioning the ownership of the two Hybrid Fibre Co-axial (HFC) networks, NBN has been discussing a shared management approach with both Telstra and Optus for their respective networks.
NBN entered into a MoU with Telstra to negotiate a significant contract for Telstra to support the NBN network build in areas currently covered by Telstra’s HFC footprint as well as additional work for Telstra under NBN’s maintenance contracts.
Under the MoU, Telstra and NBN will negotiate to finalise a contract covering the design, engineering, procurement and construction management of the NBN network in the HFC footprint covered by the existing Telstra HFC network. This contract is expected to be completed early in 2016.
The announcement also includes an agreement for Telstra to undertake some early works to support the build of the NBN network in the HFC footprint while the contract is negotiated. This will include preparing Telstra NBN exchange locations and HFC planning and design work.
Telstra has also been awarded work under two new contracts as one of the network operations and maintenance services providers to NBN with work anticipated to start in early 2016. These two contracts have an estimated combined first year revenue of approximately AUD 80 million subject to the volume of work.
Discussions with Optus are ongoing with a similar objective.
