Why the BSA (ASX:BSA) share price is on watch today

The BSA Limited (ASX: BSA) share price is on watch this morning on news the company has secured a major new deal with Telstra.

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The BSA Limited (ASX: BSA) share price is on watch this morning on news of a major new telecommunications deal.

The technical services company announced after yesterday's market close that it has secured a multi-year agreement for its field operation services. The BSA share price closed flat at 33 cents in trading yesterday.

What did BSA announce?

In the release, BSA advised it has entered an agreement to provide Telstra Corporation Ltd (ASX: TLS) with field operations services in partnership with Kordia Solutions.

BSA provides installation and maintenance solutions to the broadcast and telecommunications industries. Kordia Solutions focuses on end-to-end telecommunications, communications, broadcast and servicing infrastructure needs.

The field operations services agreement will see BSA provide Telstra with a range of services. These includes designing and constructing building systems services across its existing Victoria and Tasmanian properties. In addition, the company will perform major telecommunications work in both states that will involve asset relocation and delivery of wideband connectivity.

BSA said the initial term of the deal will be for a 3-year period. This can be extended on Telstra's behalf for an additional two 1-year options.

The new deal is projected to generate around $25 million in revenue for BSA's first year of the contract. While this is based on forecasted work volumes carried out, further opportunities are expected to arise in the later years.

What did the managing director say?

BSA managing director Tim Harris, welcomed the deal, saying:

BSA is extremely proud to have teamed with Kordia to secure this contract and to begin a collaborative working relationship with Telstra. We look forward to a long and successful partnership as we bring our expertise in service delivery and customer experience to Telstra and its customer base.

About the BSA share price

The BSA share price has been on peaks and troughs throughout 2020. Reaching as high 41 cents in January, before falling as low as 23 cents in March due to the COVID-19 sell-off.

BSA has market capitalisation of $143 million at its current price.

Motley Fool contributor Aaron Teboneras owns shares of Telstra Limited. The Motley Fool Australia owns shares of and has recommended Telstra Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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