Telecoms construction firm, Service Stream has announced its decision with withdraw from the construction of the National Broadband Network project due to various issues resulting in financial losses to the company.

Lend Lease is planning to pick up the existing contracts and Downer EDI has joined the NBN in other areas.  Syntheo is a joint venture between telecommunications contractor Service Stream and construction firm Lend Lease and is facing problems with the project to roll out the ambitious NBN in the country to offer faster connectivity to the users.

The company had reached an agreement with NBN Co to hand back its work in the Northern Territory, and Service Stream had halted its trading Australian Stock Exchange during the previous month while it accesses its position on the project.

The uncertainties relating to the NBN joint venture are affecting the company's profitability.  It is aiming to improve its financial position, which has been affected by continuing issues with Syntheo, which is its joint venture with Lend Lease, which holds several lucrative construction contracts to build the NBN.  Jobs cuts might impact the company's fixed communications arm of Service Stream, which contains the Syntheo joint venture.  The unit has been under review from the management since the shares of the company were suspended.

"As a consequence of the review, Service Stream will recognise a material loss for the project in the FY13 financial year.  In addition, the Syntheo Joint Venture partners and NBN Co have agreed that Syntheo will complete construction work in progress, under the existing contracts for Western Australia and South Australia, but that no further work will be instructed under these contracts," the company said.