The new agreement is expected to generate revenues of around NZ$390
million and is made up of an existing contract of around $190 million
and expected new work of around $200 million, subject to actual volumes
and work types.
The new four year contract, with an option to
extend for a further four years, will see Visionstream expand its
operation into Hutt Valley, Masterton, Napier, Hastings and Gisborne in
the North Island and Ashburton, Timaru, Oamaru, Queenstown, Invercargill
and Dunedin in the South Island.
Visionstream currently connects
customers to the Ultra Fast Broadband network in Auckland, Wellington
City and South, Porirua, Kapiti and Manawatu.
“Under this new
agreement Visionstream will deliver more customer connections to the
Ultra Fast Broadband in more locations across New Zealand,” Richard
Kelleway, CEO Visionstream said. “We are very pleased to continue to
expand our partnership with Chorus and play a role in delivering faster
technology to homes and business across the country.”
“Chorus is
pleased to further extend its relationship with Visionstream.
Visionstream’s operating model has proven to be very effective in
attracting new crews and lifting performance as we meet very high levels
of demand for fibre across New Zealand,” said Mark Ratcliffe, CEO
Chorus.
Visionstream has provided services to Chorus since 2009,
including the design and build of the UFB network in Auckland, and the
Rural Broadband Initiative (RBI) across the upper North Island.
The new contract commences early October 2016.