NBN Co has extended Ericsson’s contract to roll out wireless broadband in the bush and awarded it extra work to run ground stations for its satellite program in a deal worth up to $400 million.
Ericsson was already the main partner for rolling out wireless broadband to 4 per cent of Australian homes and businesses that couldn’t be reached with fibre-optic cabling.
The wireless networks rollout involved erecting mobile towers across regional Australia as part of a $1.1 billion deal and was plagued with delays and poorly sited towers.
But the process has since improved, with Ericsson remaining the key partner. The wireless broadband contract, which was due to end by 2015, has been extended to 2018 with options to push it out until 2020.
Neither party was able to disclose the value of the latest contract extension but it is believed to be worth between $300 million and $400 million.
The installation of satellite dishes on homes and businesses under the interim satellite solution was managed by SingTel-Optus with Victorian company Skybridge sub-contracted to do the physical work.
Ericsson Australia chief executive Håkan Eriksson said the launch of NBN Co’s dedicated satellites in 2015 would mean all homes would need new dishes to connect with the program.
He added that Ericsson would be responsible for installing wireless and satellite equipment on the homes of 1 million regional and rural premises.
The company will also manage the ground stations that send and receive signals to the satellites. But it will not control the two satellites themselves.
“Logistically all the equipment can sit on the same truck roll,” he said. “So on the one trip you can install wireless for two houses and satellite on one on the same day.
“These deals are a substantial figure ... but we’re not talking about figures.”
NBN Co chief operating officer Greg Adcock said SingTel-Optus would continue to run the tracking and control of the satellites.
