Australian telecommunications hardware vendor, NetComm Wireless (ASX:NTC), has revealed that its first order under a new contract from nbn, the builder of the National Broadband Network (NBN), will hand it a revenue injection of $28 million.
The company told shareholders on 10 February that the multi-million dollar revenue boost is expected to be generated sometime between June and August this year, when NetComm delivers the hardware to nbn.
NetComm revealed in November last year it had signed a deal with nbn to supply the company with 1-port and 4-port Distribution Point Units (DPUs), designed for the nbn’s Fibre-to-the-Curb (FttC) projects, and related services.
The contract win followed an earlier announcement by nbn that it would consider Fibre-to-the-Distribution Point (FttDP) – also known as FttC – connection for over 700,000 premises previously earmarked for Optus Hybrid-Fibre Coaxial (HFC) infrastructure or Fibre-to-the-Node (FttN) technology.
“NetComm Wireless’ receipt of this initial order commitment from nbn is a very positive start to our execution of this significant contract, and builds on our strong existing relationship with nbn,” the company’s acting CEO, Ken Sheridan, said. “We expect to quickly move to a monthly supply of distribution point units as the nbn ramps up its installation of this new technology.
“The delivery of the distribution point unit telecommunications technology to the nbn is a substantial contract for NetComm Wireless, and will provide a material revenue stream to the company,” he said.
The latest deal remained subject to successful readiness review testing by nbn, complements the existing fixed wireless technology provision arrangements it had previously struck with nbn – a deal that saw it collaborate with Ericsson.
The impending revenue injection comes as the company hunts for a new CEO, after long-time CEO and managing director, David Stewart, stepped down in December, with Sheridan stepping in to lead the company while it finds a replacement.
“I have had a long and wonderful career at NetComm Wireless and am proud to have led the company during a period of substantial growth,” Stewart said late last year. “With a strong management team in place and a global business, I feel that the time is right for me to step down now.”