It will also give NBN Co access to other infrastructure.
TransACT’s existing FTTP network covers about 8,500 premises and the purchase involves network assets currently planned or under construction covering a further 4,500 premises.
TransACT will continue to complete construction of pit-and-pipe infrastructure in a number of new estates where developer agreements are in place until 2017, and transfer ownership to NBN Co at no charge, for the installation of fibre.
It will also provide technical support to assist the integration of their FTTP network with the NBN.
NBN Co will also pay for long-term access to TransACT’s extensive system of underground ducts throughout the ACT.
“This is a good deal for iiNet, NBN Co and residents passed by the TransACT network in the ACT. For our part, it brings forward NBN Co’s ability to earn revenues, reduces construction costs and limits community disruption,” NBN Co CEO Mike Quigley said in a statement.
NBN Co plans to integrate the TransACT FTTP network with the NBN. In-premises equipment will be swapped when a home or business owner orders an NBN-enabled service through their provider.
The execution of the deal is subject to a number of conditions including ACCC clearance.