Service Stream nabs $180m Telstra network repair works

Service Stream has won a three-year, $180 million parcel of works to prepare existing Telstra infrastructure assets for the NBN fibre rollout.

The company indicated at its annual general meeting on October 24 that it had been shortlisted to win the contract. (pdf)

The contract came with two possible renewals, each of two years, which could push the total value of the contract out to as much as $420 million over seven years, Service Stream said in financial filings.

Remediation responsibilities form part of the agreements between NBN Co and Telstra. Specifically, Telstra is required to bring pit-and-pipe and other assets it is leasing to NBN Co up "to agreed fitness standards". (pdf)

Remediation works covered by the agreement are in Western Australia, South Australia, Northern Territory, NSW and the Australian Capital Territory.

"Service Stream has already commenced work on a number of remediation projects which will now be incorporated into this contract," the firm said in a statement. (pdf)

The firm had indicated at its AGM that network remediation services at Telstra were "expected to grow strongly" in the medium term.

Remediation work is seen by Service Stream as a "replacement" for revenue it had previously derived from an Access & Associated Services (A&AS) contract with Telstra, which is not being renewed when it expires at the end of the year.

Service Stream has previously indicated that it expected growth in NBN contract revenue to compensate for the expiry and non-renewal of A&AS. (pdf)