NBN contractor Service Stream has won a contract renewal from NBN Co which will see it continue to roll out fibre to greenfields developments across Australia for at least two more years.
Service Stream picked up its initial two-year contract in June 2012 as part of a $183 million bundle of work split between itself and Leighton Holdings subsidiary Visionstream, which resulted from NBN Co cutting ties with previous partner Fujitsu.
Service Stream received $81 million of the bundle to extend fibre to new premises through NSW, South Australia, Western Australia and the Northern Territory. Visionstream was awarded $102 million for rollouts in Queensland and Victoria.
Service Stream told investors today the contract has been renewed for a further two years, with two possible one year extensions. The company said it also may be awarded work in other regions under the renewed contract.
The work is expected to reap Service Stream $70 million in the first two years, with another $70 million likely if both extension options are taken up.
According to NBN Co's weekly progress report for the week ending 11th May, 99,465 greenfields premises have been passed across the country, with around 40 percent (40,431) of those passed activated.
In Service Stream's designated regions, NSW had passed 23,854 greenfields developments with fibre and activated 10,753 of those; South Australia counted 2865 new premises passed and 817 activated services; WA had 14,605 greenfields premises passed with fibre and 4468 activated; and 1808 greenfields developments in the Northern Territory had been passed, with 525 activated.