NBN names preferred tenders, but SMEs still have a chance

The National Broadband Network Company has slashed the number preferred bidders for the roll out of fibre networks across Australia by more than half, but while big contractors dominate the list of suppliers, analysts say SMEs still have a chance to get in on the action.

Twenty-one companies have been asked to enter the tending process for the NBN, some of which include Telstra, Downer EDI, UGL and Leighton Holdings.

Connect X, Ergon Energy, Jemena Asset Management and Service Stream are also included in the list of businesses the NBN Co has invited to put their bids forward.

NBN Co. head of construction Patrick Flannigan said in a statement these companies have been issued a “request for capability statement”. He maintains larger businesses were given preference because of the “significant size and complexity” of the project.

However, he also said smaller companies would have opportunities to take part in the construction effort, and said the NBN Co would be encouraging those smaller companies which previously offered their services to offer them again to the lead contractors.

“This is a great opportunity for all players in the market. The lead contractors will need all the resources and skills available to them to realise this project,” he said.

Flannigan also said planned physical construction will involve a “staged approach”. The project itself will require laying more than 200,000 kilometres of fibre cable, with over 10 million premises to be connected.

Telsyte research director Foad Fadaghi says while the different roles companies can still play is unclear, SMEs will certainly have opportunities to participate and they should pay attention to any developments in their local areas.

“There will still be roles in contracting. There are projects that will be regionally-based, and there will be a need for the people in that region to dig trenches, specific to that area.”

“In terms of the larger organisations being contracted, that’s a must because the size of the project is just huge. But there will still be opportunities for smaller businesses to get their hand in the project.”

Meanwhile, communications minister Stephen Conroy announced some amendments to the telecommunications reform bill last night, which reflect the $11 billion deal made with Telstra earlier this week regarding the National Broadband Network.

In a statement last night, Conroy said the proposed amendments provide “legislative certainty” for both Telstra and the industry.

The bill will now contain clear mechanisms for the Australian Competition and Consumer Commission to consider an enforceable undertaking from Telstra to structurally separate. A provision for allowing Telstra to bid for a next-generation mobile spectrum is also in place.

Additionally, the bill will now allow Telstra to seek approval from shareholders on a proposal to migrate its fixed-line customers to the NBN, while other amendments will provide more transparency while the NBN is rolled out.

“The Bill strengthens consumer protections and reforms the telecommunications regulatory landscape to generate more competition, encourage better services and lower prices in the interests of consumers, business and the economy more broadly,” Conroy said.