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Aussie Broadband (ASX:ABB) swaps fibre network with VicTrack

Telecommunication
ASX:ABB      MCAP $1.086B
06 September 2021 13:40 (AEST)

Source: VicTrack

Aussie Broadband (ABB) has signed a ten-year deal with VicTrack to swap access to their respective fibre network.

VicTrack is a Victorian Government business that operates the state’s fibre assets, which includes Victoria’ railway and tram lines, networks and infrastructures.

Under the swap agreement, VicTrack will provide Aussie Broadband access to its fibre network. While Aussie Broadband will provide its fibre network to VicTrack.

Additionally, the telecommunications provider will also construct access to National Broadband Network (NBN) points of interconnect for VicTrack.

Aussie Broadband will initially fund the connections for an expected $1.4 million.

The swap will increase Aussie Broadband’s fibre network, especially in regional Victoria and increase its metro coverage.

Notably, the deal includes two ten-year options to extent the partnership.

Managing Director Phillip Britt said the deal is a “highly strategic move”.

“Smart partnerships like this one with VicTrack enable us to not only expand our network beyond what was originally planned, but also frees up capital to improve our reach in other states,” he said.

“This is a win for Aussie Broadband, a win for VicTrack and most importantly, a win for our customers and their access to high speed, quality internet connections.”

On the market today, Aussie Broadband is up 4.19 per cent and is trading at $4.48 per share at 12:29 pm AEST.

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