Service Stream signs new NBN contract

Five-year contract covers FTTP, FTTN and FTTB

Service Stream has signed a new contract with NBN to roll out National Broadband Network infrastructure including fibre-to-the-node (FTTN), fibre-to-the-premises (FTTP) and fibre-to-the-building (FTTB).

The five-year contract is based on the new Multi-technology Integrated Master Agreement (MIMA) template, which replaced the Network Services Master Agreement (NSMA).

MIMA is an outcomes-based contract. NBN in June started signing construction partners to the new agreement.

In addition to Service Stream, Downer, Transfield, Visionstream, Fulton Hogan and WBHO have signed MIMA-based contracts.

NBN has said that 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 when the government-owned company signed the initial tranche of MIMA contracts.

Service Stream said that it estimates FY16 work under the new contract will be worth $8 million to $10 million. The initial program of work will begin in December in Victoria.

"Service Stream is proud to expand our role in supporting NBN as they undertake one of the nation's most significant infrastructure projects to provide better broadband to all homes and businesses," Service Stream managing director, Leigh Mackender, said in a statement.

Outside of FTTN, FTTP and FTTB, HFC is the major component of the fixed line component of the network. NBN has struck deals with Optus and Telstra to progressively take ownership of the telcos' HFC networks.

NBN will officially launch its FTTN offering on 21 September.

NBN recently revealed that the cost of rolling out the 'multi-technology mix' National Broadband Network will cost more than it previously expected.

However, in its updated corporate plan NBN said that the MTM network will still be rolled out faster and cheaper than the all-fibre approach pushed by the former Labor government.

The Senate yesterday demanded that the government release the high level desktop analysis conducted by NBN of the cost of restarting a pure FTTP rollout.

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