NBN Co, the company rolling out Australia's national broadband network, said Monday it has awarded A$1.6 billion in equipment contracts over the next five years.

U.S. optic fiber manufactuer Corning Inc. (GLW) was awarded a A$1.2 billion contract over five years, Italy's Prysmian SPA (PRY.MI) was awarded a A$300 million contract and Melbourne-based Warren & Brown Technologies was awarded a contract worth A$110 million.

NBN Co Chief Executive Mike Quigley said part of the company's purchasing strategy was to make a substantial up-front purchase commitment to encourage suppliers to invest in their Australian supply chain ramp-up as the project heads for a major rollout.

"They can invest with confidence in plant, equipment, recruitment and training to meet the needs of our national project," he said.

Quigley doesn't expect much impact on the timetable of the NBN rollout from recent devastating floods in Queensland state.

He added that NBN Co. is still in discussions with Telstra Corp. (TLS) on a deal relating to access to Telstra infrastructure and decommissioning of its copper network.

"It is a very complex negotiation," he said.

-By Gavin Lower, Dow Jones Newswires; 61-3-9292-2095; gavin.lower@dowjones.com
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