Aussie Broadband has secured a six-year wholesale deal with More and Tangerine, telcos backed by Commonwealth Bank The deal adds 250,000 broadband connections and significantly alters the competitive landscape.

The agreement will lift Aussie Broadband’s NBN base to about 1.04 million services and is tipped to generate $12 million in annual EBITDA from 2027.

The contract is also a direct hit to Vocus, which previously supplied Tangerine.

Owned by Macquarie Group and Aware Super, Vocus has mulled divesting its consumer division before. The loss of Tangerine’s business could rekindle that debate.

There could be some industry consolidation happening soon

Vocus inherited its consumer arm through a $3.75 billion merger with M2 in 2016 and later expanded with the $861 million Nextgen Networks acquisition. Macquarie and Aware acquired the group in 2021 for $3.5 billion.

For Aussie Broadband, the timing is fortuitous. Its latest results showed net profit up 24 per cent to $32.8 million and revenue climbing 19 per cent to $1.2 billion for the year to June 30.

The deal may also cool talk of a takeover.

Aussie Broadband last year made a $466 million bid for Superloop but was rebuffed, with Origin Energy buying a blocking stake.

With Aussie’s market value now almost level with Superloop’s $1.5 billion, a merger remains possible, but for now the focus seems firmly on organic growth.