NBN Co Expands Wireless Footprint as it Announces Partners for $1.1B Upgrade

To upgrade large parts of NBN Co’s fibre-to-the-node network to fibre-to-the-premises on demand, the company has awarded four major construction contracts that are worth approximately $1.1 billion.

NBN Co also announced a $120m fixed wireless contract. This is set to expand its network coverage and capacity, allowing the nationwide wholesale provider to potentially reach into areas currently only serviced by satellite.

Contracts of different sizes were awarded to Downer Group, Fulton Hogan Utilities, and Lendlease Services for the fibre upgrade. This is in addition to Ventia’s $400m contract. Downer also secured NBN Co’s Fixed Wireless Services $60m contract with an initial term of two years 

The contracts are set to cover the design and construction necessary to support NBN Co’s $2.9b network investment plan. This will make the telco’s highest wholesale speed plans available, on-demand, to up to 75% of households and businesses on the fixed-line network by 2023 when added to its planned FTTC and HFC upgrades.

Ventia’s contract covers Queensland, NSW, and Victoria while Downer has won an estimated $160m of business to deploy in NSW and Western Australia. On the other hand, Lendlease has been awarded contracts for NSW, Victoria, Queensland, and the ACT while Fulton Hogan Utilities has won contracts for Western Australia and South Australia.

According to NBN Co chief operations officer Kathrine Dyer, “We are very pleased to work with these delivery partners to continue to evolve the NBN network and ensure more Australian homes and businesses can access the broadband services they need to remain productive while working and studying from home, and also to enjoy all of the entertainment and social benefits that high-speed broadband delivers.”

“Not only will this work help deliver greater broadband access to more homes and businesses, but these network investments will also help stimulate job creation and retention through new build activities that would otherwise have scaled-down at the end of our initial build.”

The N2P Evolution fibre upgrade contract of NBN Co to the four different contractors will commence this month. The initial term will be through to December 2023 and an extension option of two years is included. 

For Downer, the contract is valued at an estimated $160 million over the initial two-and-a-half-year term. The estimated value of the initial term is $60 million and the total estimated value is up to $120 million.

According to Downer CEO Grant Fenn, “With the major network build programs now complete, Downer is pleased to assist in the evolution of the NBN network. These two contracts consolidate Downer’s position as a key long-term NBN-approved delivery partner, and we look forward to continuing our partnership and optimising the NBN network.”