Origin Energy to Transition Broadband Services from Aussie Broadband to Superloop

Origin Energy, a major Australian energy retailer, has announced plans to transfer its broadband customer base, consisting of over 130,000 subscribers, from Aussie Broadband to Superloop. This migration marks a significant shift in Origin Energy’s wholesale partnerships and is expected to span the next six years.

The decision to switch wholesale allegiances reflects Origin Energy’s strategic realignment in the broadband market and its commitment to enhancing service offerings for its customers. By partnering with Superloop, a leading telecommunications provider, Origin aims to leverage its network infrastructure and capabilities to deliver reliable and high-speed broadband services to its customer base.

Superloop has announced the signing of an exclusive six-year wholesale contract with Origin Energy, which includes provisions for Superloop to receive shares upfront as well as additional shares upon the completion of the initial migration and achievement of customer growth milestones. This agreement underscores the long-term commitment between Superloop and Origin Energy and highlights the strategic partnership between the two companies in the telecommunications sector.

Superloop’s growth milestones under the exclusive six-year wholesale contract with Origin Energy include reaching a broadband customer base of 600,000 subscribers by FY26. The initial migration of Origin’s current 130,000 customers to Superloop is planned for FY25. These milestones signify the ambitious targets set by Superloop and highlight the potential expansion opportunities for both companies in the broadband market.

Superloop’s growth milestones under the exclusive six-year wholesale contract with Origin Energy include reaching a broadband customer base of 600,000 subscribers by FY26. The initial migration of Origin’s current 130,000 customers to Superloop is planned for FY25. These milestones signify the ambitious targets set by Superloop and highlight the potential expansion opportunities for both companies in the broadband market.

Once the migration of the 130,000 customers is completed, Superloop expects its total customer base to reach approximately 560,000. Phillip Britt, the group managing director of Aussie Broadband, expressed disappointment at not being able to reach an agreement with Origin to renew their white label wholesale agreement. This shift in wholesale allegiance marks a significant development in the broadband market landscape, potentially reshaping competition dynamics among service providers.

Britt emphasized that Aussie Broadband has consistently prioritized contracts that provide value to shareholders while maintaining a high-quality service offering for customers. This commitment underscores the company’s dedication to balancing financial considerations with customer satisfaction and operational excellence.

Britt stated that given the contract parameters set by Origin, it became evident that Aussie Broadband would not be able to meet either of their objectives: delivering value to shareholders and maintaining a high-quality service offering for customers.

Britt emphasized the importance of a disciplined approach to assessing contracts and capital deployment, especially given the growth profile of Aussie Broadband and the retail and wholesale opportunities they are pursuing.

Superloop, a telecommunications company, declined an unsolicited acquisition offer from Aussie Broadband worth approximately $466 million. Despite this rejection, Superloop remains dedicated to evaluating potential wholesale opportunities moving forward. The decision underscores Superloop’s strategic approach to business development and its commitment to maximizing value for its shareholders while maintaining high standards of service for its customers. As the telecommunications landscape continues to evolve, Superloop will continue to explore avenues for growth and expansion, leveraging its expertise and resources to capitalize on emerging opportunities in the market.