NBN: Visionstream scores $90m greenfields contract extension

Contract covers Victoria, Tasmania and Queensland

NBN Co has handed Leighton Contractors subsidiary Visionstream a two-year contract extension for network design and construction in three states. The contract covers Victoria, Tasmania and Queensland and is worth $90 million.

The contract includes the option of two one-year extensions, a statement issued by the company said.

"We are delighted to continue our work with NBN Co for the new developments project," Visionstream's general manager for NBN, Allan Bradford, said

"Collectively we are improving delivery and performance and look forward to setting the standard for fibre deployment in new developments, enabling NBN Co to meet Australia’s need for high speed broadband connections."

NBN Co construction partner Service Stream yesterday inked a similar contract renewal with the government-owned company charged with rolling out the National Broadband Network. The contract extension covered design and construction of fibre in greenfield estates and is worth at least $70 million over two years.

Visionstream in March 2013 won an NBN network design and construction contract worth $334 million covering parts of the east coast.

In March 2012, the company announced a $300 million contract to roll out of the NBN in Tasmania, followed by an announcement in June that it had won a $102 million contract covering greenfield estates in Victoria and Queensland.

Visionstream has also won NBN-related contracts with Telstra and Ericsson.

The company's NBN work in Tasmania has been a source of controversy, with the Communications, Electrical and Plumbing Union accusing the company of unfair work practices.

Communications Minister Malcolm Turnbull last year expressed concerns about Visionstream's ability to complete its NBN work in Tasmania.

"The reality is that right now after six years of a Labor Government, nine out of 10 Tasmanians don’t have any access to the NBN at all," Turnbull said in an ABC Radio interview in November.

"So the bottom line is there is nothing I could do — not one thing I could do to stop the NBN rollout in Tasmania because it has been stopped for several months. And at this stage, Visionstream is just not building anything. And there is a serious problem there which we have got to address.

"So I’m not suggesting we would dishonour or breach any contracts but at the moment nothing is being done under the contract by the contractor. "

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Tags Visionstream Australianational broadband networkNational Broadband Network (NBN)nbn coVisionstreamNBN

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