Telstra has picked network services company Service Stream to prepare its legacy pit and pipe infrastructure for the National Broadband Network (NBN) in a deal worth up to AU$420 million.

As part of its AU$11 billion deal with NBN Co, Telstra will lease pit and pipe infrastructure from its legacy copper network to NBN Co over the next 30 years for the NBN. Service Stream announced today that it has secured the contract to undertake network remediation for Telstra in Western Australia, South Australia, the Northern Territory, New South Wales, and the Australian Capital Territory.

The three-year contract is worth an initial AU$180 million, but could be extended out to seven years and be worth AU$420 million.

Service Stream has already secured a number of contracts for the NBN, including fibre maintenance and the construction contracts won by its joint venture with Lend Lease, Syntheo .

Service Stream previously announced that Telstra would not renew its existing Access & Associated Services contract with Service Stream past the end of 2012. However, the company said it believes that the existing contracts it has for the NBN will compensate for the revenue loss from this contract.