Service Stream keeps NBN fibre contracts

Service Stream has secured a two-year extension on its NBN greenfields construction contract estimated to be worth up to AU$70 million.

While the National Broadband Network (NBN) switches to fibre to the node in many places, Service Stream will continue rolling out fibre to the premises for new housing estates for NBN Co, in a deal worth AU$70 million.

The extension to Service Stream's 2012 AU$81 million contract will see the company design and construct the fibre network into new housing developments in New South Wales, Western Australia, South Australia, and the Northern Territory for the next two years.

The company indicated in a statement to the Australian Securities Exchange that as part of the new agreement with NBN Co, Service Stream may also be awarded work in other states and territories.

The entire deal is worth approximately AU$70 million over the next two years, with a further AU$70 million up for grabs if NBN Co offers the two one-year contract extensions to Service Stream.

In a statement, Service Stream Managing Director Terry Sinclair said the deal highlighted the company's position as NBN Co's leading partner in the greenfields rollout.

"This new agreement further cements Service Stream's ongoing relationship with NBN Co, and shows our continued commitment to one of the nation's leading infrastructure projects," he said.

Last year, Service Stream agreed to pick up the construction work for the NBN from its joint venture company Syntheo, after the company failed to meet the contract requirements for work in the Northern Territory. At the time, Service Stream said it would record a material loss of AU$20 million for the last financial year as a result of Syntheo's woes.

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