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NBN contracts reveal the state of Telstra’s ducts

$AU300 million going down the tube

Internet Security Threat Report 2014

Earlier this week, Telstra wrapped up its contracts for the duct remediation the carrier committed to under its National Broadband Network agreements. The telco contracted Visionstream to carry out remediation work in Victoria and Tasmania, at a cost of $AU90 million.

Industry newsletter Communications Day has tallied up the national contracts, and is reporting that the minimum price tag on “pit and pipe” remediation is $AU335 million. The other two contracts, signed last year, were given to Silcar ($AU65 million in Queensland) and Service Stream ($AU180 million to work through NSW, SA, WA, NT and the ACT).

Under the three-way deal between the Federal Government, NBN Co and Telstra, the incumbent will be renting duct access to carry NBN fibre,

Many NBN proponents have pointed at the state of Telstra’s existing network as a reason for supporting the NBN, something that appears in line with the better-than-$AU300-million cost of replacing old, damaged or broken ducts.

Communications Day notes that even this isn’t the final price tag. The Visionstream contract includes options for two yearly renewals that could bring the final price to $AU210 million. ®

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