Equipment contracts awarded to companies with strong local presence
NBN Co today announced contracts worth up to $635 million over the next five years to six companies operating in Australia to provide an array of equipment for installation in homes and businesses as part of an NBN connection.
The six successful companies include two Australian-owned and operated companies: Madison Technologies and Warren & Brown; a partnership between a private Australian company Optimal and US company OFS; and three international companies with a strong local presence (Corning Cable Systems, TE Connectivity, and 3M).
In addition to the local employment generated within these companies from their Australian operations, NBN Co estimates that up to $150 million of the total spend on in-premises equipment will be locally produced.
The types of components supplied include internal fibre distribution hubs for apartment blocks and offices, internal cables, wall outlets, patch leads, and devices that will house the connection of the fibre from the street to the outside of premises. These components will be used by NBN Co and its contractors for free standard installations when residents and business owners order a service from their Retail Service Provider.
NBN Co CEO Mike Quigley said: “We have worked to domestically source as much equipment for the NBN as possible. However, we needed to balance costs against the preference for Australian-made to arrive at a cost-effective result.
“As we only recently announced our 12-month rollout schedule - with construction to start in areas covering over half a million premises - today's announcement is an important part of the development of our supply chain. We have sourced a range of equipment to form a catalogue of consistent, quality components that our installation contractors can use to suit different housing and commercial building types.
“We have now put in place most of the equipment supply arrangements that we need for the rollout initially, but plan to go to the market as the rollout ramps up to source additional suppliers for a range of our equipment needs,” Mr Quigley said.
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|Supplier||Component||5 year potential value (AUD)|
|Corning|| ||$ 310 m|
|Optimal / OFS|| ||$ 110 m|
|TE|| ||$ 105 m|
|Warren & Brown|| ||$ 60 m|
|Madison|| ||$ 30 m|
|3M|| ||$ 20 m|
|Total||$ 635 m|