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2016-02-05

nbn

CWU seeks clarification of new Telstra/nbn contracts

The CWU is seeking clarification from Telstra about the implications of new nbn contracts announced late last year.

In late December, Telstra announced that it had signed two new contracts with nbn for maintenance of elements of the nbn network.

Telstra said that the first contract, which will run for 3 years, would involve fixing faults on the copper network and undertaking a small number of new connections for services that are yet to transfer to the NBN.

The second contract will run for four years and see the company fix line faults and connect new homes and businesses for a range of technologies.

Both include the option for renewal of contracts at the end of their initial term.

Telstra also announced that it has signed a memorandum of understanding with nbn covering the design, engineering and construction management of the NBN network in the HFC footprint covered by the existing Telstra HFC network.

The two maintenance contracts are estimated to be worth some $280 million to Telstra over the next four years. But the big money is in the HFC contract. Although this is yet to be finalised, industry sources have estimated its value to be between $1.5b and $1.8b. 

So who will be doing what work? 

While it is obviously in the interest of CWU members and other Telstra employees that Telstra has an ongoing role in nbn construction and maintenance, it is not clear how much of the work involved will be given to internal staff and how much will be contracted out. 

The CWU will seek details of Telstra’s workforce planning in this area and assurances that there will be better use of the skills of its internal workforce than we saw during the round of redundancies last year.

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