The Gillard Government today welcomed the announcement by NBN Co and Optus that they had entered into an agreement that will see Optus decommission its Hybrid Fibre Coaxial (HFC) cable network and migrate customers to the National Broadband Network (NBN).
This agreement is proof that the NBN is recognised by Australia's major telecommunications companies as the future of industry.
The announcements today that both Telstra and Optus, which combined represent over 60 per cent of the retail broadband connection market, have entered into such significant agreements with NBN Co demonstrate that the NBN is welcomed by the majority of the industry.
The Optus agreement to migrate its HFC customers to the NBN and to decommission its HFC network will provide greater certainty about NBN Co's revenue, and will further increase the take‑up of NBN services.
NBN Co's agreement with Optus is also recognition that the NBN would create a level playing field for fixed services that has the potential to bring about real benefits for customers.
To support the Optus and NBN Co Agreement, the Government has provided NBN Co with a funding agreement to enable it to enter into substantial commitments with Optus and Telstra. The Government has also provided a guarantee to Optus in respect of NBN Co's financial commitment to it.
Further information on the Optus and NBN Co deal can be found on NBN Co's website at www.nbnco.com.au.