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- Service Stream has extended its contract with NBN Co. for a further 18 months
- NMRA contract was initially signed in September 2012
- Under the contract, the company will continue to provide nbn with services
Service Stream has extended its contract with NBN Co. for a further 18 months.
The Network Augmentation and Restoration Activities (NMRA) contract was signed in September 2012 and has been extended numerous times since.
Under the NMRA contract the company will continue to provide nbn with services related to improvement, maintenance and relocation of infrastructure across its fixed-line broadband network.
The company’s revenue under the contract was approximately $55 million in financial year 2019 and $35 million in financial year 2018.
Service Stream is a provider of essential network services to the telecommunications and utility sectors. It accesses, designs, builds, installs and services network services to its clients.
It’s a Melbourne based company which operates across all states and territories around Australia. It has 2200 employees and access to 3000 specialist contractors.
nbn is a broadband network and provides services on its local access network on equivalent terms to retail phone and internet providers.
The broadband network was established in 2009 to design, build and operate Australia’s wholesale broadband network and is on track to be completed in 2020.
The original budget from nbn was $29 billion and was topped up $19.5 billion in 2017 by the Federal Government. Last year an additional $2 billion was added from the private investment markets due to higher costs of the rollout and deferred revenue.
But was all this money worth it?
nbn’s competitor 5G hasn’t even been fully launched in Australia yet. 5G is a next-generation mobile technology that will offer faster-than-ever speeds for mobile phones, tablets and more.
5G says it will be faster and just as reliable but nbn will apparently reach more locations.
Service Stream Managing Director Leigh Mackender says the contract extension shows confidence in the company’s abilities.
“Following the recent extension of the OMMA contract, we are very pleased
that by extending the NMRA contract nbn has demonstrated further confidence in Service Stream’s ability to provide critical network maintenance and upgrade services to the National Broadband Network, he said.
“We look forward to continuing as nbn’s leading network maintenance delivery partner.”
Service Stream is down 0.72 per cent on the ASX this morning and is currently selling for $2.75 per share at 11:50 am AEST.
