Aussie Broadband and VicTrack join for greater internet reach
Internet retailer Aussie Broadband has agreed to a fibre-sharing deal with VicTrack, which owns Victoria’s transport land, assets and infrastructure, including the rail transport telecommunications network.
The deal will give Aussie Broadband access to VicTrack’s fibre network, while in return VicTrack will be able to access Aussie Broadband’s fibre network. With an initial 10-year agreement, there are a further two 10-year extensions possible should the deal prove successful.
Aussie Broadband is currently deploying its fibre network throughout Victoria, and the agreement will allow it to save resources to use in other states as it gains access to the VicTrack network.
With VicTrack owning extensive fibre into regional Victoria, the deal will see Aussie Broadband able to offer its services into areas such as Geelong, Ballarat and Bendigo among others. It’s believed Aussie Broadband will focus on increasing its business fibre services into regional Victoria as a priority.
Aussie Broadband will also be able to increase its metro coverage with it gaining more protection options via the VicTrack network without the need to construct more links of its own.
The broadband retailer will also construct access to points of interconnect (POI) to the National Broadband Network for VicTrack as part of the deal.
VicTrack is a licensed telecommunications provider in its own right, offering its broadband services to transport and government sectors throughout the state. Access to the Aussie Broadband network will allow VicTrack to expand its services throughout Victoria.
The swap between the two companies will allow for a capacity of equal and agreed value, Aussie Broadband said, with the cash flow impact on each entity to be ‘modest’.
The lease of Aussie Broadband’s fibre paths to VicTrack is believed to cost about $3.1 million a year, with VicTrack’s fibre lease to Aussie Broadband costing around $3.2 million annually. Aussie Broadband will also fork out $1.4 million to create the POI to the NBN network, a cost which it expects to recoup over the course of the deal.
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