NBN signs new contracts for fixed-line rollout

Five-year FTTx contracts signed under new MIMA contract model

NBN has signed new National Broadband Network construction contracts. The company formerly known as NBN Co says that the new contracting model will deliver better results for the network rollout.

The new Multi-technology Integrated Master Agreement (MIMA) replaces the Network Services Master Agreement (NSMA).

NBN said the new contracting model offers "flexible volume commitments, competition between delivery partners, and pricing based on outcomes rather than inputs"

"What this means is that the performance of our construction partners, the quality of their work and their adherence to safe work practices will determine how much additional work they will receive," NBN CEO Bill Morrow said in a statement.

"We have worked closely with the industry to reduce the complexity of our contracts to make them easier to administer and to reward good work as we gear up to accelerate the rollout."

NBN today announced it had signed contracts with Downer, Transfield, Visionstream, Fulton Hogan and WBHO.

NBN didn't reveal the total value of the contracts, which cover the rollout of fibre-to-the-node (FTTN), fibre-to-the-building (FTTB), and fibre-to-the-premises (FTTP).

Some 4 million premises are covered by the contracts.

The other major fixed-line component of the National Broadband Network is hybrid fibre-coaxial (HFC). NBN has struck deals with Optus and Telstra to progressively take ownership of the telcos' HFC networks.

In February NBN revealed it had signed a contract with ARRIS Group to upgrade the HFC networks to the DOCSIS 3.0 cable broadband standard.

Downer EDI said that its new five-year contract with NBN would be worth approximately $100 million in the first year.

"The value of the contract in subsequent years will depend on the volumes allocated by NBN as the roll out continues under the [MIMA]," a statement from the company said.

"In the first year of the MIMA roll-out, Downer is forecast to make the NBN available to approximately 144,000 premises in Queensland, New South Wales and Western Australia," a statement from the company said.

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Downer has previously carried out FTTP work in NSW, Victoria, Queensland, Western Australia, the ACT and South Australia under the NSMA.

Transfield said its five-year agreement with NBN is potentially worth up to $140 million for the company in the first year.

Visionstream said it estimated the value of its new FTTN and FTTP construction contract, which covers Queensland, New South Wales, Victoria and Tasmania, to exceed $270 million in the first year.

"NBN have developed an extensive new infrastructure installation program and we are excited to be a trusted partner for this multi-technology rollout. This new work builds on our extensive experience across Australia's eastern seaboard since 2011," Visionstream CEO Richard Kelleway said in a statement.

Earlier this month NBN revealed that it had hit the million mark, with more than 1 million premises able to order a National Broadband Network service.

Of those, 571,517 are brownfields in the fixed-line footprint, 180,796 are premises in greenfields areas included in the network's fixed-line footprint, and 220,917 are premises able to order fixed wireless services. In addition, 38,743 premises have connected to the network via NBN's Interim Satellite Service.

NBN revealed in its Q3 results last month that 389,000 services had been activated on the network.

NBN has estimated that the network is adding 12,000 serviceable premises every week.

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