Service Stream scores three Telstra contracts

Construction company Service Stream has won a new fibre-to-the-premise deal and renewed two existing contracts with long-time partner Telstra.

Service Stream won the tender for Telstra’s FTTP for commercial estates contract, running for two years with a value of $30 million.

Additionally, an agreement with Telstra for asset relocation and commercial works has been given a three-year, $55 million extension with the option of a further two-year extension, and a site acquisition, environment and design mobile infrastructure deal has been extended for two years at a value of $50 million. 

Service Stream’s chief financial officer Bob Grant said the latter two contracts were long-held, the site acquisition deal originating in 2006 and the asset relocation agreement initially inked more than 10 years ago.

“If Telstra has some underground ducting and copper and fibre and a new road needs to go in, or someone’s extending a train line, a new piece of civic infrastructure is going to clash with an existing piece of Telstra infrastructure, in which case Telstra has to move its assets. We do that moving for them under the [asset relocation] contract,” he said.

Service Stream’s site acquisition, environment and design mobile infrastructure (SAED) contract is part of a pair of deals which also covers the construction of Telstra’s mobile infrastructure. The company has held the construction contract since 2006 and in December 2011 renewed the contract again until January 2014.

“Service Stream is probably the biggest contractor in the [site acquisition] space. To get a new mobile phone tower together there’s basically two pieces of work,” he said.

“The SAED is basically the white-collar works associated with getting a new mobile tower. The site acquisition part is locating and purchasing a site, and doing a deal with the land owner, or business owner if it’s a rooftop deployment. It also involves getting council and regulator permits and detailed design."