Aussie Broadband moves 350,000 AGL telco services onto its platforms
Aussie Broadband is shifting about 350,000 broadband and mobile services it took over from AGL's telecommunications arm, and gains a five-year marketing arrangement that opens AGL's customer base to it.
Aussie Broadband (ASX:ABB) is transferring roughly 350,000 broadband and mobile services onto its own systems following its purchase of AGL's telco operations. The transaction was signed in February and closed in June 2026. Aussie Broadband issued new shares as payment, giving the energy retailer an equity holding that can increase if performance targets are hit.
The business came with retail customers on broadband, mobile and fixed voice. When Aussie Broadband reported results in August, it had already moved over 116,000 broadband and 30,000 mobile services. It expects the remaining transfers to wrap up in the second quarter of FY27.
Dealroom points to AGL's five-year marketing partnership as the real strategic prize, since it opens up the retailer's large customer base to Aussie Broadband. Because power and telco are both recurring monthly household bills, packaging them together can cut the cost of signing up customers and reduce churn.
The AGL deal follows a period of fast expansion. Aussie Broadband finished migrating the More and Tangerine customers in June. It posted FY26 underlying EBITDA growth of 19.6 per cent to US$107 million and guided to US$132.6 million to US$139.1 million for FY27. The company has also widened its Western Australian operations.
Migration is the riskiest stage of a telco acquisition, because billing, provisioning and mobile numbers all have to move cleanly, and any disruption could send customers to competitors. Management said it expected some churn but that the process was going well. The extended schedule suggests a preference for a smooth experience over a fast one.
Dealroom says the acquisition places Aussie Broadband among the leading national broadband providers, behind only the big incumbents. A larger base helps because wholesale costs are largely set on a national basis, spreading fixed costs over more customers. Whether the energy channel delivers lasting growth once migration ends is the open question.