Aussie Broadband has inked a six-year exclusive wholesale agreement with More Telecom and Tangerine Telecom, adding over 250,000 broadband connections and boosting its network to more than one million users. The deal is expected to contribute $12 million in annual EBITDA from FY27 and marks a significant step in Aussie Broadband’s wholesale growth strategy.
- Six-year exclusive wholesale agreement with More and Tangerine
- Migration of 250,000+ broadband connections to Aussie Broadband’s network
- Estimated $12 million annualised EBITDA uplift from FY27
- Issuance of approximately 5.88 million shares to More Telecom
- Sale of Buddy Telco brand and assets to Tangerine for around $8 million
A Strategic Wholesale Expansion
Aussie Broadband has announced a landmark six-year wholesale agreement with More Telecom and Tangerine Telecom, two rapidly growing Australian telecommunications providers. This partnership will see the migration of over 250,000 broadband connections onto Aussie Broadband’s network, pushing its total NBN connections to approximately 1.04 million. This milestone achieves one of Aussie Broadband’s strategic goals two years ahead of schedule, positioning it as the fourth largest NBN provider in Australia.
Financial Upside and Shareholder Alignment
The deal is expected to generate an estimated $12 million in annualised underlying EBITDA from FY27, based solely on the connections at migration. This figure is before amortised incentives, which reduce the post-incentive EBITDA to around $7 million annually. Importantly, the transaction is 12% accretive to Aussie Broadband’s underlying earnings per share on a pro forma basis, signaling a positive impact on shareholder value.
To cement the partnership, Aussie Broadband will issue approximately 5.88 million shares to More Telecom, representing about 2% of its current issued capital. These shares will be subject to escrow arrangements, aligning interests and ensuring a long-term collaborative relationship.
Leveraging the Nitrogen Platform
Central to this agreement is Aussie Broadband’s proprietary digital wholesale platform, Nitrogen. Designed and built in-house, Nitrogen enables wholesale partners like More and Tangerine to scale efficiently by integrating ordering, appointment setting, and service management seamlessly. This platform not only supports operational scale but also enhances customer experience by allowing partners to operate as if they had direct NBN connectivity.
Buddy Telco Sale and Market Positioning
In a related transaction, Aussie Broadband will sell the Buddy Telco brand and customer assets to Tangerine for an estimated $8 million, with completion expected in the second half of FY26. Buddy Telco, launched in mid-2024, has grown to nearly 14,000 connections and serves the value-led residential broadband segment. The sale aligns with the broader wholesale strategy and allows Tangerine to consolidate its customer base on the Aussie Broadband network.
Looking Ahead
The migration of More and Tangerine’s connections is slated to begin in H2 FY26, with the companies continuing to manage their retail customer services independently. The partnership is supported by the Commonwealth Bank of Australia, which holds a 40% equity stake in More and Tangerine and has extended its partnership through 2035, underscoring the strategic importance of this alliance.
Aussie Broadband’s CEO Brian Maher highlighted the cultural and operational synergy between the companies, emphasizing a shared commitment to high-speed internet and customer satisfaction. More and Tangerine’s CEO Andrew Branson praised Aussie Broadband’s collaborative approach and robust network, reinforcing confidence in the partnership’s growth potential.
Bottom Line?
This wholesale deal not only accelerates Aussie Broadband’s growth but also sets a new benchmark for digital wholesale partnerships in Australia’s broadband market.
Questions in the middle?
- How smoothly will the migration of 250,000+ connections proceed starting H2 FY26?
- What growth trajectory can More and Tangerine sustain beyond the initial connection base?
- How will the amortised incentives impact Aussie Broadband’s near-term earnings visibility?