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Service Stream (ASX:SSM) secures multi-year Unified Operations Agreement with nbn

Industrial, Telecommunication
ASX:SSM      MCAP $785.3M
16 December 2020 14:15 (AEST)

Network services company Service Stream (SSM) has signed a new deal with NBN Co (nbn) for service and maintenance of the National Broadband Network.

The deal

The new agreement replaces the existing Operations and Maintenance Master Agreement (OMMA) that has been in place since December 2015.

With an initial term of four years, plus two potential two-year extension periods, the new long-term deal shores up the partnership between SSM and nbn for the provision of service activations, operations and maintenance.

The services will cover core network technologies, including Fibre to the Node (FTTN), Fibre to the Premise (FTTP), Fibre to the Basement (FTTB) Fibre to the Curb (FTTC) and Hybrid Fibre Coax (HFC).

Service Stream has been allocated regions across Queensland, South Australia, the Northern Territory and Western Australia, with potential additional regions to be allocated at nbn’s discretion.

Service Stream Managing Director Leigh Mackender says the company welcomes the new extension to its relationship with nbn.

“As a leading provider of operations and maintenance services to the telecommunications industry, we are pleased to secure another long-term maintenance agreement with nbn and to continue providing vital support to its customers,” Leigh said.

“Following the recent signing of the Unify Networks agreement in August across a similar term, Service Stream will effectively be providing nbn with operations and maintenance support across all mainland states and territories under either the Unify Networks or Services agreements,” he said.

“We look forward to continuing to support nbn’s maintenance programs for many years to come,” he added.

Outlook

It’s expected the deal will be worth around $70 million in revenue during its first year, with subsequent years dependent on work volumes.

The transition to the new Unify Services agreement is expected around March next year.

Service Stream is down 9.62 per cent, trading for $2.16 at 1:38 pm AEDT.

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