Service Stream Secures $440 Million NBN Fibre Upgrade Contract
Service Stream Limited has locked in a significant $440 million contract with NBN Co to continue upgrading Australia’s fibre network, extending its role in the national infrastructure program.
- New $440 million agreement with NBN Co over 3.5 years
- Supports upgrade from Fibre to the Node to Fibre to the Premises
- Covers Queensland, New South Wales, and Victoria
- Includes a 2-year extension option at NBN Co’s discretion
- Continues existing N2P Evolution Agreement work beyond Q3 2025
Service Stream Extends Its Role in NBN’s Fibre Upgrade
Service Stream Limited (ASX – SSM), a key player in Australia’s telecommunications infrastructure sector, has secured a substantial new contract with NBN Co valued at approximately $440 million. This agreement will span an initial 3.5-year term, with an option for a further two years, underscoring the company’s ongoing partnership in upgrading the nation’s broadband network.
The contract focuses on the progressive transition of the remaining Fibre to the Node (FTTN) network to the more advanced Fibre to the Premises (FTTP) technology. This upgrade is critical for enhancing internet speeds and reliability for eligible premises across Queensland, New South Wales, and Victoria.
Continuity and Growth in a National Infrastructure Program
Service Stream’s new agreement effectively extends the work currently underway under its existing N2P Evolution Agreement, which was due to conclude in the third quarter of 2025. The continuation of these services ensures operational continuity and provides the company with a stable revenue stream over the coming years.
Leigh Mackender, Managing Director of Service Stream, expressed pride in the company’s sustained involvement, highlighting the importance of their specialist design and construction services in supporting NBN’s ambitious infrastructure goals. This contract not only reinforces Service Stream’s position as a trusted partner but also reflects the ongoing demand for upgraded telecommunications infrastructure in Australia.
Strategic Implications and Market Positioning
With a workforce of around 5,000 employees and access to a large pool of specialist contractors, Service Stream is well-positioned to meet the demands of this extensive upgrade program. The contract’s scale and duration provide a degree of revenue visibility that is likely to be welcomed by investors, particularly in a sector where long-term infrastructure projects are key value drivers.
While the announcement does not disclose detailed financial terms beyond the contract value or specific project milestones, the inclusion of a two-year extension option offers NBN Co flexibility and potential for further collaboration. Market watchers will be keen to see if this option is exercised, which could extend Service Stream’s involvement well beyond the initial term.
Overall, this contract win marks a significant milestone for Service Stream, reinforcing its role in Australia’s evolving telecommunications landscape and supporting the broader national push towards enhanced digital connectivity.
Bottom Line?
Service Stream’s $440 million contract cements its role in Australia’s fibre future, but eyes remain on NBN’s extension decision.
Questions in the middle?
- Will NBN Co exercise the 2-year extension option to prolong Service Stream’s contract?
- How will this contract impact Service Stream’s revenue and profitability in the coming years?
- What are the potential operational challenges in upgrading the remaining FTTN network to FTTP?
