Telstra and NBN have announced additional agreements which will see Telstra providing support for the NBN network in areas currently covered by its Hybrid Fibre Coaxial (HFC) footprint.
The new Memorandum of Understanding means Telstra will also undertake additional work under NBN’s maintenance contracts.
Telstra and NBN will negotiate to finalise a contract covering the design, engineering, procurement and construction management of the NBN network in the areas covered by the existing Telstra HFC network. This contract is expected to be completed early in 2016.
Telstra and its engineering subcontracts will also undertake some early works to support the build of the NBN network in the HFC footprint while the contract is negotiated. Work 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 $80m subject to the volume of work. The first contract, which spans for three years, will see Telstra fixing faults on the copper network and undertaking a small number of new connections for services that are yet to transfer to the NBN.
The second, four-year contract, also relates to fixing faults and connecting new services, but for the Fibre to the Node (FTTN), Fibre to the Premises (FTTP), Fibre to the Basement (FTTB) and HFC technologies in select areas once a customer has migrated to the NBN.
Both contracts include the option for NBN to extend.
Telstra Chief Executive Officer Andrew Penn said this announcement was the result of the strong working relationship between Telstra and NBN.
“I am delighted that we have an opportunity to support NBN by leveraging Telstra’s knowledge and experience in network design and construction management, as well as continued maintenance,” Penn said.
“We have already engaged in work with NBN such as the successful 1000-node trial including FTTN node design and construction and further design work under NBN Planning and Design Services Agreement.”
[Image: FreeImages.com/David Ritter]