Wednesday, May 22, 2013

iiNet seals multimillion-dollar NBN deal

Telecommunications company iiNet has sealed a multimillion-dollar agreement to sell-off TransACT's fibre-to-the-premises network in the ACT, less than two years after buying the Canberra company.

iiNet announced the agreement with NBN Co on Wednesday, saying the company would receive $9 million for the existing locations passed by the network, which covers about 8500 premises. A further 4500 premises are planned or already under construction.

iiNet chief executive officer Michael Malone said customers would be kept in the loop about the sale, which comes less than two years after his company bought TransACT for $60 million in November 2011.

"We'll be communicating with our [fibre-to-the-premises] customers throughout the process to ensure a smooth transition over the next 12 months," he said.

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The deal, expected to be complete within two months, also provides NBN Co with long-term access to additional underground duct infrastructure within the capital.

It only affects properties that use fibre-to-the-premises.

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