Aussie Broadband Group (ASX:ABB) has announced its acquisition of AGL Energy’s (ASX:AGL) telecommunications arm.
The buyout marks a significant expansion for the "Aussie" brand, absorbing an estimated 350,000 broadband and mobile connections alongside 46,000 voice services.
The deal is slated for completion by June, with a full customer migration expected by the first half of the 2027 financial year.
Beyond a simple asset transfer, the companies have entered into a long-term exclusive partnership.
The collaboration allows AGL to continue offering telecommunications services under its own well-established brand while leveraging Aussie Broadband's award-winning network infrastructure and customer service expertise.
By bundling energy and telco offers, the partnership aims to tap into AGL's massive existing customer base to drive mutual growth.
Aussie Broadband projects the deal will contribute approximately $235 million in revenue and $21 million in underlying EBITDA within the first year post-migration.
Looking further ahead, the group has set a target to scale AGL Telco connections to over 500,000 within five years.
The acquisition not only intensifies competition within the NBN and mobile sectors but also signals a shift toward integrated utility and communication services for Australian households.