A recent spate of NBN related deals has highlighted how much work lawyers are picking up from the government-owned broadband network. In the past week Optus has reportedly nearly agreed to shut down its own cable network and transfer customers to the NBN. The deal, worth between A$500m and A$1bn has been under negotiation for over a year, and is considered crucial to the success of the A$35.9bn NBN project as a whole.
In addition, Swedish networking giant Ericsson has signed on to provide wireless access to the network for areas not able to be covered by fibre optic cable. That deal is worth approximately A$1.1bn and will be pivotal to the project’s success in rural and remote parts of Australia. Earlier this year Leighton Holdings won the major construction contract to complete work on the NBN, kick-starting the project.
The most anticipated deal of all, the on-going negotiations with Telstra for use of its existing cable network as part of the project, is now expected to reach financial close in the coming week, bringing the NBN into full swing.
While firms are mostly unable to disclose all NBN transactions they are involved in for reasons related to client sensitivity, Webb Henderson partner Angus Henderson said it is obviously a “very interesting time” for lawyers involved in the deals – a good portion of Australia’s TMT lawyers according to him. “There’s a high degree of complexity on both the transaction and regulation side,” he added. “Obviously a range of instruments, documents and agreements put the whole thing together; with some interesting issues being thrown off - from the structural separation from Telstra to how NBN Co will deal with its customers.”
In addition, while this time is particularly busy in terms of infrastructure, the work will be of an on-going nature according to Henderson: “The network will evolve; it will move and the work will continue to flow,” he concluded.
Below is a table of deals closed, or nearly closed related to the NBN*.
|
Parties |
Description of contract |
Value |
Legal advisors (client) |
|
NBN Co, Telstra |
Negotiations to install NBN fibre optic cable into existing Telstra network |
Estimates range from A$9bn-A$11bn and will not be known until the deal is finalised in late June |
Blake Dawson (NBN Co - Macdonald, Tim Brookes, Carl Della-Bosca, Kevin Arkwright and Mel Harris); Corrs Chambers Westgarth (government - Thomas Jones, Andrew Messenger, Byron Koster, and James North); Minter Ellison (government - Richard Dammery, Michael Brennan, Geoff Shelley); Gilbert + Tobin (Telstra); Mallesons Stephen Jaques (Telstra - Cheng Lim, Neil Carabine, Renae Lattey, Trish Henry, Nicole Heller, Justin Cherrington, Scott Heezen, Alison Lansley, Tim Bednall, Andrew Norman ) |
|
NBN Co contracts with each of Corning Cable Systems, Prysmian Cable & Systems, Warren & Brown and Tyco Electronics |
Prepared each of the procurement contracts, negotiated the agreements with the suppliers and executed the deals for passive equipment |
$2.1 billion for passive agreements |
Corrs Chambers Westgarth (NBN Co) |
|
NBN Co contracts with each of Nokia Siemens Network and NBN Co |
Prepared each of the procurement contracts, negotiated the agreements with the suppliers and executed the deals for active and optical equipment |
$1.4 billion for active agreements |
Corrs Chambers Westgarth (NBN Co) |
|
NBN Co, Ericsson |
Negotiation of wireless network for areas not covered by the fibre |
A$1.1bn |
Allens Arthur Robinson (Niranjan Arasaratnam - NBN Co) |
|
NBN Co, Optus |
Negotiation of shut-down of Optus cable network |
A$500m – A$1bn |
Baker & McKenzie (Optus – James Halliday, Patrick Fair), Clayton Utz (NBN Co) |
|
NBN Co Silicar/Theiss |
Silicar/Theiss joint venture to deliver passive fibre network to approximately 37% of Australia |
A$380 million over the next two years with an option of a further two years at an additional value of A$740 million |
Awaiting confirmation |
|
NBN Co, IBM |
Negotiations to be system integrator |
A$200m |
Corrs Chambers Westgarth (NBN Co) |
|
NBN Co, NT Power and Water Corporation |
Deal to jointly supply power and water ducts to Darwin residents |
A$150m |
Corrs Chambers Westgarth (NBN Co) |
|
NBN Co, Austar |
NBN Co acquisition of Austar’s rural and regional network |
A$120m |
Awaiting confirmation |
|
NBN Co, Fujitsu |
Greenfields housing project deal. Fibre deployment into first Greenfields housing estate |
A$100m in first year |
Corrs Chambers Westgarth (NBN Co) |
|
NBN Co, various contractors and suppliers |
Advising on the construction and equipment supply for the fire network and aggregation nodes |
N/A |
Corrs Chambers Westgarth ( NBN Co) |
*The list is based on deals ALB has been notified of and may not include all deals. If you would like details of work associated with the NBN included, please contact ALB.