Telco networks provider Amcom has signed a $20 million deal with the Northern Territory state government to provide high-speed fibre based telecommunications services.
Telco networks provider Amcom has signed a $20 million deal with the Northern Territory state government to provide high-speed fibre based telecommunications services.
The agreement involves extending its existing fibre networks in both Darwin and Alice Springs to provide data carriage services to government agencies and schools.
Amcom chief executive, Clive Stein said he was delighted to have won the contract.
"This is a beachhead contract of significant value and provides us with expanded infrastructure and scale to capture further organic opportunities in Darwin and Alice Springs," Mr Stein said in a statement.
"The additional fibre optic infrastructure to be installed in Darwin and Alice Springs will enable us to leverage other commercial opportunities and introduce new data products for business customers, who to date have had limited access to high-speed fibre services."
Diamond Communications, a subsidiary of Ausdrill, has been appointed as lead contractor for the project.
Amcom and Diamond have an established relationship that successfully delivered the SABRENet project in South Australia on time and on budget.
It is estimated that the capital expenditure for Amcom will be in the order of $10 million and is expected to be completed by September 2010.
Full announcement below:
Amcom signs $20 million contract with Northern Territory Government
Amcom Pty Ltd, a wholly owned subsidiary of Amcom Telecommunications Limited ("Amcom") (ASX:AMM), has executed an agreement to provide high-speed fibre based telecommunications services to the Northern Territory Government (NTG).
The agreement with the NTG will involve Amcom extending its existing fibre networks in both Darwin and Alice Springs to provide data carriage services to government agencies and schools.
The initial contract value is for $20 million over 5 years. Amcom will establish an office in Darwin to service the Northern Territory business and pursue further commercial opportunities.
"We are delighted to be awarded this tender from the Northern Territory Government as it reinforces Amcom's growth strategy and our position as a leading provider in high-speed fibre based telecommunications", said Amcom CEO Clive Stein.
"This is a beachhead contract of significant value and provides us with expanded infrastructure and scale to capture further organic opportunities in Darwin and Alice Springs", said Mr Stein.
"The additional fibre optic infrastructure to be installed in Darwin and Alice Springs will enable us to leverage other commercial opportunities and introduce new data products for business customers, who to date have had limited access to high-speed fibre services", said Mr Stein.
The expansion of Amcom's existing Darwin infrastructure will commence this month with Diamond Communications, a subsidiary of Ausdrill being appointed as lead contractor for the project.
Amcom and Diamond have an established relationship that successfully delivered the SABRENet project in South Australia on time and on budget. It is estimated that the capital expenditure for Amcom will be in the order of $10 million and is expected to be completed by September 2010.
The recently announced Federal Government $250m Blackspot program to build a regional broadband backbone includes a new fibre backhaul linking Darwin to other capital cities.
"Amcom's new infrastructure will be well positioned to complement the Federal Government's initiative by providing competitive last mile infrastructure" said Mr Stein.
