Overseas companies pick up big share of NBN Co contracts worth $635m
- 15 November, 2011 11:43
- Comments 3
NBN Co has awarded 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.
However, only two are Australian-owned and operated. The successful companies are: two Australian-owned and operated businesses, 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 employment generated in Australia within these companies, 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.”
Quigley said NBN Co had now put in place most of the equipment supply arrangements that it needed need for the rollout initially, but planned to go to the market as the rollout ramped up to source additional suppliers for a range of its equipment needs.
Nominations for the 2012 ARN IT Industry Awards open on Tuesday, June 12.
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Comments
paulhahn52
Not really sure where you are going with this article. You cite that ....
"NBN Co has awarded contracts worth up to $635 million over the next five years to six companies operating in Australia ....
However, only two are Australian-owned and operated."
Yet that contracts of $635M is only a small portion of the contracts awarded by NBNCo for the build. You also ignore all the other Australian companies that have been awarded contracts, not to mention the O/S based companies that have manufacturing facilities in Aus. To make the point, the value of the contracts and their subsequent stimulus to manufacturing and employment in this country far exceeds the 'only two .... Australian owned and operated companies involved in the NBN build.
I suggest you follow this link .... http://whirlpool.net.au/wiki/nbn#nbn_structure .... and have a look at ALL the contractors involved, the total worth of contracts assigned, assess who has manufacturing bases in Aus, who will be employing from the local workforce, etc, before going off half cocked by making ridiculous inferences/suggestions that Australian companies are missing out on the benefits of the NBN spend.
Massive fail on your part and reflects badly on the integrity of your research. Or is it nothing more than a troll ?
iTnoX
Paul,
The story is a simple statement of fact about the latest contracts awarded. ARN has already documented most, if not all, the other contracts awarded. In this case, the majority - representinga significant amount of money - went to OS companies. I agree Whirlpool is an excellent resource for things NBN as it is a dedicated site. I also note that many of ARN's stories have appeared on Whirlpool. This is simple report of the facts on the day; not an attempt to provide detailed analysis of everything NBN Co has contracted out.
Steve M
Have to agree with Paul, even though he's having a bit of a spray.
An article headlined: "Overseas companies pick up big share of NBNCo contracts";
and whose first sentence is: "NBNCo has awarded contracts worth up to $635m ... to six companies ...however, only two are Australian-owned" - makes it LOOK like Ozzie companies are missing out overall, not just in the latest contracts.
In fact I don't see the words 'in the latest contracts' anywhere in the article.
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