Origin Energy has announced a significant shift in its broadband strategy, signing a six-year wholesale contract with Superloop. This move will see Origin migrate its existing 130,000 broadband customers away from current provider Aussie Broadband and onto Superloop’s network.
The agreement includes an upfront equity stake in Superloop for Origin upon successful customer migration and achievement of specific growth targets. Additionally, Origin will have the option to acquire further shares in Superloop if desired. These growth targets reportedly aim to reach a combined broadband customer base of 600,000 subscribers by the 2026 fiscal year.
The customer migration process is scheduled to begin in fiscal year 2025 and is expected to be completed within the following year. Superloop CEO Paul Tyler expressed enthusiasm about the deal, highlighting its alignment with the company’s growth strategy.
Tyler said that securing the origin contract is a key progress milestone in three years growth strategy. It will deliver a significant increase in customer base. Also, it will strengthen Superloop’s position as a leading provider of wholesale broadband.
“This partnership fosters strong alignment and growth aspirations for our broadband customer base. We are delighted to welcome Origin as a shareholder and offer them the option to acquire further shares,” he added.
Superloop anticipates its total customer base to reach approximately 560,000 upon completion of the Origin customer migration.
Meanwhile, Phillip Britt, Group Managing Director of Aussie Broadband, expressed disappointment at the outcome of contract negotiations with Origin.He emphasized Aussie Broadband’s commitment to delivering value to shareholders while maintaining high-quality service for customers.
Aussie Broadband, currently experiencing significant growth, highlighted the importance of a disciplined approach to contract evaluation and capital deployment. The company confirmed its continued pursuit of strategic opportunities in both retail and wholesale broadband markets.
This development comes after Aussie Broadband’s unsolicited $466 million buyout offer for Superloop was rejected last month.
