Leighton subsidiary awarded NBN contract

By a staff reporter

Leighton Holdings Ltd subsidiary Visionstream Australia has contract with NBN Co for the roll out of the national broadband network in Victoria, Queensland and southern New South Wales, which the group says has the potential to earn it around $1 billion.

In a statement to the Australian Securities Exchange, Visionstream said it had been awarded three work packages worth $334 million, comprising passive fibre network design and construction to bring high speed, fibre optic broadband to Melbourne, Brisbane and NSW cities including Wollongong.

The group said the contract was for two years, with options for two addition one-year extenions.

The payment from the extension could push the figure toward $1 billion, VIsionstrem said.

“Visionstream has proven itself as a reliable, expert and capable partner for NBNCo and we look forward to delivering broadband benefits to Victorian, New South Wales andQueensland communities," managing director of Leighton Contractors Craig Laslett said.

“This contract enables Visionstream to continue to grow and create a substantial number of new employment opportunitiesin the local areas.”

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Just a few quick questions. If the LNP win the coming election, which is odds on, will the Coalition then cancel this contract? If so, do they then have to pay penalties to Leightons? What oother contracts would they need to cancel. Who else will they need to pay penalties to? Have they factored this into their costings...which we are yet to see. The Coalitions altenative NBN gets murkier and more costly everyday.
Don't worry, the LNP are Telstra's Alan Bond. Forget benefits to business and the economy as Telstra and their media Partner will end up in absolute control with minimal or no regulation as part of the deal. Note Telstra and Optus over the last 10 years have spent as much in CAPEX as the NBN will spend . What have we got for that spend.? 2 Years for Telstra to fibre Bris South - just one exchange. Quicker - better? http://www.crn.com.au/News/336304,coalition-has-three-options-for-nbn-report.aspx " spook1958 The NBN with its usual big hype have stated that Toowoomba QLD now has NBN and how wonderful it is. Only the main business centre has been connected at this point and other parts will come online from the next couple of months to the next couple of years. But what I do not understand is that Telstra is refusing to connect ANY businesses to the NBN. They are only connecting residential. Why? I can't get any straight answers and the customers certainly can't either. One of NBNs major selling points from day one was the benefit to business, where is the benefit? Is this only a Telstra decision to protect its existing business or is there more to it?" With their plans and actions, Telstra is effectively discouraging take up to give the LNP ammunition