Telstra has announced a cull in its access network supplier contracts, trimming 100 contracts and 100 vendors to three -- Service Stream, Silcar and Visionstream -- with a view to saving AU$140 million over two years.
The three suppliers will provide Telstra with fault repairs, installations, civil works and construction work in the access network.
The supplier agreements are for two years, with a two-year extension option -- potentially covering up to AU$2.5 billion of work over the four years -- and are expected to yield a saving of approximately AU$140 million over the initial two-year term.
Visionstream will build and maintain copper and fibre optic networks -- including both new and existing infrastructure -- for the telco and also act as contractor for Telstra's on site connections, switching on the company's new cable and copper customers. According to Visionstream, the contract will see it double the work it provides to Telstra and generate around AU$300 million in revenue.
Service Stream also expects to generate a similar revenue from the deal and will provide installation, maintenance and construction of copper, fibre and broadband networks from the exchange to Telstra's customers' premises to the telco.
Telstra Services group managing director Michael Rocca said the new arrangement also ensured Telstra had certainty of labour supply if it is chosen to build Australia's fibre- to-the-node network.
"If we're given the green light for the construction of the FTTN network, we are ready, willing and able," he said.
AAP contributed to this story.
