Telstra scores $1.6b NBN HFC contract

Telco signs mammoth cable contract

Telstra has been awarded a mammoth NBN contract for work on the telco’s hybrid-fibre coaxial (HFC) network, which is being incorporated into the National Broadband Network.

The contract is worth $1.6 billion and includes planning, design, construction and construction management.

The agreement covers work within the footprint of the telco’s HFC network, ownership of which is being transferred to NBN.

Telstra and NBN last year foreshadowed the contract, signing a letter of intent and memorandum of understanding. Telstra has already carried out early work to support the NBN HFC rollout.

The Australian Competition and Consumer Commission (ACCC) has expressed misgivings over today's HFC deal.

NBN is in ongoing discussions regarding arrangements for 400,000 premises that are within the footprint of the Optus HFC footprint that don't overlap with Telstra’s HFC assets.

NBN completed an HFC pilot in February. The pilot was based on Optus HFC assets and involved Exetel, TPG subsidiary iiNet and Telstra.

Today’s contract announcement is one of a series of NBN wins for Telstra, which is being paid billions to migrate its customers to the National Broadband Network and transfer ownership of its copper network.

Telstra has also signed maintenance agreements, including one that will see it fixing faults on the copper network, elements of which are being employed for the rollout of fibre to the node (FTTN).

FTTN and HFC are key fixed line components of the government’s ‘Multi-Technology Mix’ vision for the National Broadband Network.

“We have a very strong relationship with NBN and I am pleased that we have reached an agreement and can support NBN in building out the NBN network in the existing Telstra HFC footprint,” Telstra’s CEO, Andrew Penn, said in a statement issued today.

“Telstra has a long and proud history in network construction and we believe we will bring great expertise to this important part of the NBN network. We are already mobilising our workforce to ensure we support NBN in their roll out schedule.

“We look forward to working with NBN on this significant program of work, helping to bring the NBN network to millions of homes and businesses.”

“Telstra has enormous experience in HFC design and construction, and the rollout will be greatly assisted by having them as a key partner in the delivery of this part of the network,” NBN's CEO, Bill Morrow, said in a statement.

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Tags NetworkingHybrid Fibre Coaxial (HFC)nbn coNational Broadband Network (NBN)national broadband networkTelstra

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