TE Connectivity wins $105M premise equipment installation contract for Australian national broadband network

Nov. 15, 2011
Contract follows NBN Co'.s $400 million award to TE Connectivity in March for related network equipment.

SYDNEY, Australia -- In Sydney, TE Connectivity (NYSE: TEL) announced that it has been selected by Australia's NBN Co. to supply optical connectivity systems for installation in homes and businesses as part of the country's National Broadband Network (NBN).

"NBN Co. is pleased to be working with TE Connectivity again as we ramp up the network rollout. As we only recently announced our 12-month rollout schedule -- with construction to start in areas covering over half a million premises -- today's announcement is an important part of the development of our supply chain," commented Mike Quigley, CEO of NBN Co.

NBN Co. is an Australian government-owned business enterprise formed in mid-2009 to design, build and operate the NBN. The network will enable high-speed broadband services to be delivered to all Australian households and businesses through a combination of fiber to the premise, wireless and satellite infrastructure.

NBN Co. has awarded a five-year, $105 million contract to TE Connectivity; this contract follows a $400 million award to the company in March for related network equipment. TE employs over 350 staff, located in 14 offices and factories, in Australia.

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NBN Co. is operating a wholesale-only, open-access network, and making its wholesale services available to retail service providers on non-discriminatory terms. The total projected capital cost of the 9.5-year construction project is AUD$36B.

"We are excited to have been selected again as an NBN Co partner and we will continue to make investments in infrastructure and staff in Australia in support of the NBN Co.," commented Alan Clarke, president of TE Connectivity's Network Solutions segment. "The team at TE Connectivity is extremely proud to be a part of NBN Co's deployment of broadband services in Australia."

The NBN has already passed more than 18,000 homes. NBN Co. has announced plans to offer broadband network services to every one of Australia's 13 million premises.

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