Posts Tagged ‘NBN’

ASX Company News: Transfield Services Secures Broadband Fibre Contract

Wednesday, September 7th, 2011

Transfield Services (TSE) has signed a A$133 million contract with NBN Co to design and construct the fibre optic network in Victoria over the next two years. The contract is for two years with an option to extend for a further two years with a potential value of up to $395 million if the option is taken up. Work will commence in October 2011, subject to satisfaction of several conditions precedent.

“We are pleased to use our expertise in the design, construction and maintenance of telecommunications assets to play a greater role in the delivery of one of the most significant nation building infrastructure projects ever undertaken in Australia,” said Transfield Services Managing Director and Chief Executive Officer Peter Goode. “In addition to our technical experience, Transfield Services can offer NBN Co a uniquely integrated knowledge-based service that includes our in-house design, aerial services and project management capabilities.”

In June 2011, Transfield Services completed the construction of the fibre optic network at one of the first release sites located in the southern New South Wales coastal communities of Minnamurra and Kiama Downs. Transfield Services was also recently awarded NZ$462 million in contracts as part of the rollout of New Zealand’s Ultra Fast Broadband network. Transfield Services has an extensive telecommunications business across Australia and New Zealand. Clients include Telstra, Chorus, Enable Networks, Transpower, Meridian Energy and New Zealand’s Department of Conservation.

Transfield Services delivers essential services to key industries in the resources and industrial, property and infrastructure sectors. A leading global provider of operations, maintenance, and asset and project management services, Transfield Services has more than 26,000 employees in Australia, New Zealand, the United States, Canada, the United Arab Emirates, Qatar, India, Malaysia, Chile and New Caledonia.

www.transfieldservices.com

http://www.traderdealer.com.au/fundamentals/tse

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ASX Company News: Optus Secures Agreement For High Speed Broadband Customers

Friday, June 24th, 2011

Optus (SGT) announced that it had reached a landmark agreement with NBN Co on the migration of its Hybrid Fibre Coaxial Cable (HFC) customers to the National Broadband Network (NBN). Under the agreement, Optus will begin the progressive migration of its customers to the NBN once the network is rolled out in an area and is ready to provide services to customers currently served by Optus’ HFC network. Optus estimates the total value of the agreement as approximately A$800 million on a post tax net present value basis, with HFC customers migrated to the NBN following deployment of the network in HFC serving areas in accordance with the anticipated timetable. Payment will be received progressively on migration. Optus and NBN Co expect that the initial migration of customers to NBN infrastructure will commence in 2014. The program is expected to take up to four years to be completed across Optus’ entire HFC footprint. Optus will continue to supply services to customers using its HFC network until the NBN is built and customers have been migrated.

Paul O’Sullivan, Optus Chief Executive said, “Optus was born in competition. This deal supports the NBN to create a level playing field for all telcos. Australian consumers will be the winners. “This agreement represents a fair deal for Optus. We intend to use the NBN to turbo-charge competition and to deliver the full potential of a 21st century digital life to customers,” Mr O’Sullivan said. Mike Quigley, NBN Co Chief Executive said, “A definitive agreement with Optus, Australia’s second largest ISP, represents a significant step in the journey towards a true level playing field for retail broadband services”.

www.optus.com.au

http://www.traderdealer.com.au/Fundamentals/sgt

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A Labor Minority Government – Investment Impacts

Tuesday, September 7th, 2010

The federal election result is finally resolved after two and a half weeks of negotiations. The Labor party will form a minority government alongside Greens MP Adam Bandt and independents Andrew Wilkie, Tony Windsor and Rob Oakeshott, for a 76 (Labor) to 74 (Coalition) decision. Ms Gillard is now the first elected female prime minister of Australia.

This means that investors now have clarification on:

National Broadband Network (NBN) – This was a key differentiator in the final decisions of the independents. Telstra stands to receive $11 billion from the Labor government as the NBN goes ahead.

Super Levy – Labor will implement a 12% compulsory level which will favourably impact banks and investment funding pools.

Minerals Resource Rent Tax (MRRT) – The mining tax will get the go-ahead, and our miners will be directly impacted by this. Indirectly, the MRRT will impact superannuation investment returns.

Banks – Will benefit from the 12% super levy. With the return of the Labor Government, banks should avoid being in the government spotlight with regard to the imposing of taxes on their super profits tax, which would have negatively impacted their bottom line.

Infrastructure – There will be some additional spending, or promises brought forward for infrastructure spend, particularly in regional electorates. This will positively impact our construction sector.

Gambling – Anti-pokie supporters may get a bigger say. This would negatively impact stocks like Crown, TabCorp and Tattersalls.

The Trade

The 17-day process for reaching the final resolution of the election has meant that investors have been hesitant to commit to the market, as reflected in the low trading volumes of late. The decision for a minority Labor government has given some clarity “going forward”. We have highlighted above some of the specific stocks that will be impacted with the new government policies.

The key issues that swayed the decisions of the independents included:

  • * Stability of any new government
  • * National broadband network
  • * Climate change
  • * Regional package
  • * Education and,
  • * a tax summit.

The independents have guaranteed the passage of bills that are essential to keep the government functioning, such as supply. However they will not necessarily vote with Labor in all matters, so time will tell how workable the new minority Labor government will be. In the words of MP Rob Oakeshott, we are in for “a WOW of a time”.

By Michael Hevern
Head of Research

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Stock Market Analysis: Investors Hang on for Election Decision

Wednesday, August 25th, 2010

Investors Hang on for Election Decision

The unresolved Federal Election on the weekend has left the country with a hung parliament for the first time since the 1940’s and raises a number of issues for investors which include:

Super Levy – Labor is pushing for a 12% compulsory level which will favorably impact banks and investment funding pools.

Minerals Resource Rent Tax (MRRT) – The mining tax hangs in the balance with the Liberals promising to abolish the tax. Our miners will be directly impacted by this. Indirectly, the resolution of the MRRT will impact superannuation investment returns.

National Broadband Network (NBN) – Telstra stands to receive $11 billion from the Labor government if the NBN goes ahead, but the Liberals are promising to abandon this, thus hurting Telstra’s bottom line.

Banks – Are set to benefit from the 12% super levy. However, there may be concerns that a new government will turn their attention to imposing taxes on their super profits tax, which will negatively impact their bottom line.

Infrastructure – There may be some additional spending, or promises brought forward for infrastructure spend, to get either party across the line, particularly in regional electorates. This would positively impact our construction sector.

Gambling – Anti-pokie supporters may get a bigger say. This could negatively impact stocks like Crown, TabCorp and Tattersalls.

The Trade

The final resolution of the elections is likely to take at least another week and this will impact the Australian market as a whole, as investors do not like uncertainty.

Obviously the ultimate outcome of the elections will have impacts on specific stocks. However at this stage experts cannot agree on who will emerge triumphant, so it is difficult to position your portfolio accordingly.

By Michael Hevern
Head of Research

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