NBN signs contracts with companies to speed up rollout, expects completion by 2020

Updated

The National Broadband Network (NBN) has announced a plan to speed up the rollout of its fixed-line network.

The company building the network has signed contracts with five companies to connect 4 million homes and businesses to high-speed broadband.

NBN chief executive Bill Morrow said the contracts would streamline the rollout and the project was on track to be completed by 2020.

He dismissed criticism that project roll-out was too slow.

"The objective is to get to all 10 million homes that exist today and then there will be a number of new homes that will be built over the course of the next five years, so when all said and done it will be well over 11 million homes that will have access to a fast broadband network," he said.

The performance-based contracts signal a marked departure from the company's previous construction model.

The new contracts includes a matrix containing "three keys" which delivery partners are required to perform with — safety, quality and volume.

Contractors responsible for a particular geographical area cannot proceed unless they comply with the matrix.

Mr Morrow said the contracts are a big step forward for the NBN.

"We've seen a lot of issues in the past that we knew we had to address — these contracts hit that head on," he said.

The changes come amid fears those in rural areas are getting a raw deal, where a 20 gigabyte download limit on satellite NBN was imposed.

But Mr Morrow said it was still a step forward for the around 3 per cent of Australian homes which relied on satellite internet.

"It is a major change from what people in the bush have today," he said.

"Many don't have anything whatsoever so the first step is to get them some good basic broadband dependability and then we're going to look at ways to meet the demands for... people that need more than 20 gigabytes of data."

Mr Morrow said the five-year project was on track.

"People really want this broadband service — they know it's something that can help their lifestyle [and there are] so many benefits by getting this in, so we know people want it as fast as we can deliver it," he said.

The first of the new contracts with Downer, Transfield, Visionstream, Fulton Hogan and WBHO were signed this morning.

Mr Morrow said the organisation was in the process of negotiating contracts with more companies and expected an outcome soon.

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