NBN Co has bought iiNet’s Canberra fibre-to-the-home network for $9 million
James Hutchinson
iiNet has sold its Canberra fibre-to-the-home network to NBN Co for $9 million in an expansion of the $37.4 billion national broadband network.
The purchase will give NBN Co access to a total 8500 homes currently connected directly to fibre in newly developed Canberra suburbs. A further 4500 homes are currently under construction and will be purchased by NBN Co on a per-premises basis on completion.
iiNet had received the fibre network as part of its $60 million acquisition of Canberra-based internet service provider TransACT in 2011. TransACT also owned a fibre-to-the-node network in Canberra, and cable broadband networks in some regional Victorian towns.
TransACT chief executive Ivan Slavich had repeatedly called for NBN Co to buy both the fibre and cable networks from the company. Federal legislation had prevented iiNet from significantly expanding the network in areas where NBN Co plans to build its own network, without first receiving exemptions from communications minister Stephen Conroy.
The acquisition is subject to clearance by the competition watchdog.
More to come ...
The Australian Financial Review
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