After a period of four to five months, cabling and network integration company Yost Technologies has finally received the go ahead for contracts estimated to be worth in excess of $30 million over three years.
The company, which was bought by ASX-listed Triton Corporation in July last year, has been awarded three contracts for telecommunications network installation and construction for global technology monolith the ABB Group.
The ABB Group picked up three of 16 parcels of work offered by Telstra for the design, maintenance and upgrade of the carrier's Customer Access Network (CAN). ABB's share of the $600 million a year project is valued at around $313 million.
Yost was subcontracted in October by ABB for a range of services in Western Australia, Northern Territory, country Victoria and Tasmania and northern New South Wales, but has had to sit tight until now before it could begin work.
Yost operates a franchise model in which franchise owners are set up with a Yost-branded van and supplied work under the company's carrier contracts. According to Robert Reynolds, Triton's chairman, the company had ramped up its number of franchisees in preparation for the ABB contracts.
"It was a bit frustrating to a degree because we had the infrastructure in place since October when Telstra awarded the contracts," admits Reynolds. "So we had to wait, and in the meantime find other work, which we were able to do."
In addition to the ABB-led Telstra CAN contracts, Yost has struck a separate agreement with ABB to provide home networking installation services in rural areas of NSW, Victoria and Tasmania. The 12-month renewable contract is valued at $2.5 million per year and will see Yost install telephone points, network extensions and connections to Telstra services via copper cable.
According to Yost MD Garry Yost, this contract opens the door for the cabling company into the burgeoning home networking market.
"[The company] is in an excellent position to meet demand for the growth in domestic home networking services," says Yost. "We intend to offer smart home technology to domestic customers at the time of installation."
Photograph: Triton chairman Robert Reynolds.