Service Stream Limited has extended its contract with NBN Co to continue upgrading the ACT’s fibre network, securing $360 million in revenue over 3.5 years.
- Contract amendment with NBN Co for ACT fibre upgrades
- Extension supports transition from Fibre to the Node to Fibre to the Premises
- Project valued at approximately $360 million over 3.5 years
- Continues Service Stream’s existing work program due to end in late 2025
- Reinforces strong partnership between Service Stream and NBN Co
Service Stream Extends Role in ACT Fibre Network Upgrade
Service Stream Limited (ASX – SSM), a key player in Australia’s essential network services sector, has announced a significant extension to its existing contract with NBN Co. The amendment will see the company continue its critical work upgrading the Australian Capital Territory’s telecommunications infrastructure, specifically transitioning the remaining Fibre to the Node (FTTN) network to the more advanced Fibre to the Premises (FTTP) technology.
This contract extension is valued at approximately $360 million and is expected to span around 3.5 years, providing a substantial revenue stream for Service Stream. The project will support eligible premises in the ACT with access to faster, more reliable fibre connections, aligning with national efforts to enhance digital infrastructure.
Strategic Importance and Partnership
Managing Director Leigh Mackender highlighted the award as a testament to the strong working relationship between Service Stream and NBN Co. The extension not only ensures continuity for the current program, which was scheduled to conclude in late 2025, but also reinforces Service Stream’s position as a trusted partner in delivering high-speed telecommunications infrastructure across the region.
Service Stream’s role involves specialist design and construction services, a core competency that supports the progressive rollout of FTTP technology. This upgrade is critical for the ACT, where demand for high-speed internet continues to grow among both residential and commercial users.
Looking Ahead
While the announcement does not detail the precise timing of revenue recognition or cost impacts, the contract extension signals confidence in Service Stream’s operational capabilities and its strategic alignment with national infrastructure goals. Investors will be watching closely for quarterly updates on project progress and financial performance as the company executes this sizeable contract.
Given Service Stream’s footprint across all Australian states and territories, this successful contract amendment could pave the way for similar opportunities elsewhere, potentially expanding the company’s role in the ongoing national fibre upgrade initiatives.
Bottom Line?
Service Stream’s $360 million contract extension cements its role in ACT’s fibre future, with eyes now on execution and expansion.
Questions in the middle?
- How will Service Stream manage operational risks over the 3.5-year project?
- Could this contract extension lead to similar deals in other regions?
- What are the expected margins and profitability impacts from this contract?