NBN awards second set of FTTx build contracts

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NBN awards second set of FTTx build contracts

Telstra decides not to bid for work.

NBN has handed six contractors deals for the second set of network deployments supporting its multi-technology mix.

The list of contractors includes SA Power Networks in the Northern Territory and South Australia, QC Comms in the Australian Capital Territory and parts of New South Wales, with Lend Lease also joining it in NSW.

Service Stream and Decon scored deals for additional NBN FTTx builds in Victoria.

NBN spokesman Andrew Sholl said the contracts would cover more than one million additional premises. He declined to disclose the value of the contracts.

The companies were signed under new contracts known as 'multi-technology integrated master agreements' (MIMAs).

The new contracts first appeared in June with the signing of rejigged deals with five delivery partners. The agreements see KPIs introduced in order to force providers to prove their worth every six months.

“We designed the new contracts around quality, safety and speed and to enable our suppliers to compete for work," NBN's general manager for industry management Michael Doherty said.

"This will lift the efficiency and pace of the rollout, which is a marked change from the former contracting model where suppliers were allocated large volumes of work but faced no competition and laboured under a huge administrative burden."

Telstra is again missing from the list of NBN construction contractors.

While it was awarded a $390 million construction deal in December last year, it was not picked for the June $2 billion round of construction contracts for 5.5 million premises, which went to Downer, Transfield, Fulton Hogan and WBHO.

Telstra spokesperson Michael Zappone told iTnews the incumbent had decided not to participate in the tender based on its commercial assessment of the work.

"Our relationship with NBN Co is strong - we continue to deliver our commitments under the NBN agreements and we continue to have positiive discussions on a range of other work streams related to the NBN rollout," Zappone said.

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