Macquarie Telecom signs $100M NBN Co wholesale deal

Sells telecommunication and data services to businesses in Australia.

Macquarie Telecom has signed a deal with NBN Co to sell telecommunication and data services to businesses in Australia.

The six-year wholesale supply deal valued at more than $100 million, will give businesses access to the publicly-listed telco's internet, data and SD-WAN products delivered over NBN Co’s multi-technology-mix, which consists of fibre to the premises, fibre to the node, hybrid fibre-coaxial, fixed wireless and satellite services.

As a result, Macquarie Telecom will create 50 new jobs, with part of those dedicated to provide National Broadband Network (NBN) support.

Macquarie customers will have access to support and the partnership will allow access to all sites in Australia.

“Business class NBN by Macquarie Telecom combines NBN Co’s national infrastructure with our superior technologies, like SD-WAN, to deliver to these [greater capability] demands and elevates Macquarie to tier one telco status,” Macquarie Telecom  group executive Luke Clifton said.

“Our partnership is an opportunity for customers to develop their NBN-readiness plan with our help."

The company expects billing for the first customers to start by the second quarter of the 2019 financial year.

"The NBN access network will touch every business in Australia now or in the near future. Those organisations which capitalise will have a future-proof investment through which they can meet today’s business needs, while securing long-term choice for their organisations," Clifton said.

"We’re taking an untelco, proactive approach to the NBN access network, where other telcos are using it as a last resort and not putting customers first.”

NBN Co chief customer officer for business Paul Tyler said the agreement will be the prototype for what NBN Co can achieve in the future with other providers eager to serve the nation’s businesses, whether they are small or large. 

"It also demonstrates our underlying network infrastructure is enterprise-ready and we are well and truly open for business."

Macquarie Telecom sees the agreement as an opportunity for businesses in regional Australia to access a high speed network.

“High-speed connectivity has been prohibitive for many businesses in the past, especially in outer metro or regional. Price gouging has been common. Access to cloud and internet-based applications has been near-impossible for some," he said.

The rollout of the nbn access network brings real competition to these markets for the very first time, allowing our customers to realise the benefit of the NBN Co’s investment in its networking infrastructure.” Clifton said.

Recently two fixed wireless broadband services providers took on the challenge to service a specific region, Goondiwindi in Queensland.

Binary Networks CEO Michael Diamond told ARN that NBN Co has been slow in delivering the services, so Binary Networks built a wireless network to covers those areas.

According to NBN Co's website, the regions are serviced by the NBN, but Diamond explained to ARN that services in those areas are available through NBN Co's satellite offering, which does not deliver the speed needed by local businesses.

Country Broadband Network (CBN) also pointed out the difficulties experienced by locals when fixed-wireless provider Red Wifi was wound up in March 2017.

In order to service Goondiwindi rural area, CBN operates from five towers in and around Goondiwindi. CBN's longest connection from town currently is approximately 13km but this is increasing weekly as new sites come on line.