The National Broadband Network Co (NBN Co) has announced it has reached an agreement with TransACT/iiNet for the purchase of TransACT’s fibre-to-the-premises network in the ACT.

Under the agreement, with an initial value of around $9 million, NBN Co will purchase TransACT's existing fibre-to-the-premises network, which covers approximately 8,500 premises/lots, and has  agreed to purchase network assets currently planned or under construction covering a further 4,500 premises/lots.

Under the agreement, NBN Co will also pay for long-term access to TransACT's extensive system of underground ducts throughout the ACT.

NBN Co CEO Mike Quigley said: "This is a good deal for iiNet, for NBN Co and for 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 plans to integrate the TransACT FTTP network with the NBN. Residents' in-premises equipment will be swapped over when a home or business owner orders an NBN-enabled service through their preferred service provider.

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.