Feeds

NBN builder Syntheo gives up in two States

Not enough money to be made digging holes and slinging cable

Internet Security Threat Report 2014

Syntheo, the joint venture between Lend Lease and Service Stream Limited that won contracts to build Australia's National Broadband Network (NBN) in the States of West Australia and South Australia, will down tools forever in those States early in 2014.

NBN Co's canned utterance on the matter says it and Syntheo “ have mutually agreed that contracts due to expire in September 2013 and November 2013 in South Australia and Western Australia will not be extended.”

Lend Lease's companion piece says the company will “control the delivery of Syntheo's remaining obligations under its agreement with NBN Co, subject to the satisfaction of approval conditions.”

Syntheo's bits of the NBN should be finished early in 2014.

NBN Co says “this change is not expected to affect the overall cost of the project or the long-term completion of the build by 2021.”

Neither party is saying why Syntheo has walked away, but scuttlebutt suggests the root of the problem is money, and specifically the fact NBN Co has offered too little of it to make building the NBN profitable.

Syntheo's decision to quit doesn't mean it is also walking away from NBN Co contracts in other states, so NBN Co's “steady as she goes” attitude is not just spin, especially as it has another construction partner in each of the effected States.

Outgoing NBN Co CEO Mike Quigley has insisted previous such problems with contractors were not a sign budgets are unrealistic, but instead teething problems.

Mounting evidence suggests otherwise and with Syntheo pulling the plug on the first day of Australia's election campaign, its departure will give the opposition more ammunition for its “the NBN is in chaos and likely to cost more than expected” argument. ®

Remote control for virtualized desktops

More from The Register

next story
BIG FAT Lies: Porky Pies about obesity
What really shortens lives? Reading this sort of crap in the papers
Be real, Apple: In-app goodie grab games AREN'T FREE – EU
Cupertino stands down after Euro legal threats
Assange™ slumps back on Ecuador's sofa after detention appeal binned
Swedish court rules there's 'great risk' WikiLeaker will dodge prosecution
prev story

Whitepapers

Choosing cloud Backup services
Demystify how you can address your data protection needs in your small- to medium-sized business and select the best online backup service to meet your needs.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
How to determine if cloud backup is right for your servers
Two key factors, technical feasibility and TCO economics, that backup and IT operations managers should consider when assessing cloud backup.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
The Heartbleed Bug: how to protect your business with Symantec
What happens when the next Heartbleed (or worse) comes along, and what can you do to weather another chapter in an all-too-familiar string of debilitating attacks?