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Highlights
- BSA (BSA) missed out on a key NBN contract.
- The company remains focused on optimizing its future strategy.
- Current NBN contract remains intact until 2025 with potential extension.
Telecommunications provider BSA (ASX:BSA) has faced a setback with its recent attempt to secure a major contract for field services related to the National Broadband Network (NBN). The company was notified that it was not selected as the preferred tenderer for this significant opportunity. While this news comes as a disappointment, BSA is already taking steps to optimize its position following the tender's outcome.
BSA (ASX:BSA) had been pursuing the contract through a strategic collaboration with UGL, a leading end-to-end engineering and services provider. Together, the companies had hoped to leverage their combined expertise and capabilities to present a comprehensive solution. However, despite these efforts, the bid was unsuccessful.
It is important to note that this development does not affect BSA's ongoing work with NBN. The company continues to maintain a unified field operations contract for the ongoing service and maintenance of NBN's fixed-line infrastructure network across New South Wales and Victoria. In fact, this current contract was extended in November 2024, ensuring BSA's involvement in providing key activation and assurance services for both fibre and hybrid fibre coaxial network infrastructures.
This existing contract is set to expire in September 2025, but it does come with a possible extension option of up to 12 months at NBN’s discretion, albeit without any volume guarantees. This gives BSA a solid foundation for the time being, even though the recent tender outcome presents new challenges for the company.
BSA has been working with NBN since 2016, helping roll out and maintain the network across Australia. Over the years, the company has built a strong alignment with NBN’s long-term strategy, gaining significant expertise in areas like network activation, maintenance, and assurance. The company’s relationship with NBN is vital to its revenue stream, with work for NBN accounting for approximately 80% of BSA's revenue in FY2024.
As BSA looks ahead, the company is expected to release its financial results for the first half of FY2025 on February 20, 2025. Despite the challenges, BSA’s commitment to refining its strategy ensures that it remains well-positioned for future opportunities in the telecommunications sector.
