The National Broadband Network Co (NBN Co) has announced it has begun rollout operations in Newcastle and parts of Western Sydney.

NBN Co has announced the completion of its new fibre-exchange facility in Newcastle, which will service an estimated 135,000 homes in the Newcastle area.

“Once the rollout is complete, the NBN-ready exchange will link approximately 135,000 homes and business across the region to the NBN fibre network," Federal Minister for Broadband, Communications and the Digital Economy Senator Steven Conroy said.

“Work on the NBN fibre network will begin later this year to around 9,700 homes and businesses in Hamilton, Newcastle, and the surrounding suburbs.

“By mid-2015, construction will have commenced or be complete for 85,400 homes and businesses in the area, including Charlestown, Hamilton, Newcastle, Mayfield, New Lambton, and Tarro.”

The announcement comes after the NBN hauled its first fibre cable in Sydney's Penrith area, with the company saying the rollout to over 13,000 homes and businesses has begun.