Leighton subsidiary Nextgen Networks' long-haul carriage network will expand further after it has won a $200 million deal with Defence to supply it high capacity transmission services.
The five-year deal will see Nextgen extend its existing cable network, which was recently selected for the Federal Government's $250 million regional blackspots backhaul program. The deal expanded Nextgen's 8000-kilometre long-haul network by a further 6000 kilometres; however, the Commonwealth has retained ownership of the actual cable. Nextgen has the right to sell access to the network for the next five years.
Chief executive of Nextgen, Phil Sykes told ZDNet.com.au that while Telstra owned and operated substantially more long-haul than Nextgen, the regional backhaul deal would put it "way up there" and close to Optus' own long-haul network.
Nextgen's network after Conroy's $250 million offer
Defence chief information officer, Greg Farr, has previously commented that Defence's communications network was in need of a refresh. Defence recently committed to a $1 billion campaign over 10 years to upgrade its information and communications technology systems.