by Byron Connolly

NBN signs new fixed-line network rollout contracts

Jun 10, 2015

NBN has signed new construction contracts that it claimed will speed up the rollout of the National Broadband Network to another 4 million homes and businesses.

Contracts have been signed with Downer, Fulton Hogan, Transfield, Visionstream, and WBHO. These companies will connect premises using fibre-to-the-node, fibre-to-the-building, or fibre-to-the premises technologies.

The new multi-technology Integrated Master Agreement (MIMA) replaces the Network Services Master Agreement (NSMA).

NBN, formerly NBN Co, said the new performance based contracts is a departure from the old commercial model which guaranteed large volumes of work to suppliers in specific states and regions regardless of performance. They also placed a high administrative burden upon suppliers as well as no competition for work.

Instead, the new contracts offer flexible volume commitments, competition between delivery partners, and pricing based on outcomes rather than inputs, according to NBN.

NBN CEO, Bill Morrow, said this means the performance of the company’s construction partners, the quality of their work and adherence to safe work practices will determine how much additional work they will receive.

“We have worked closely with the industry to reduce the complexity of out contracts to make them easier to administer and to reward good work as we gear up to accelerate the rollout,” he said.

Contracts with additional suppliers are also being negotiated and nearing conclusion. NBN earlier this month said it had connected around 1 million premises to the national broadband network.