That title makes less sense the more you read it.
Instead of over-building and trying to compete with iiNet, the NBN are opting to buy TransACT’s network from the internet provider.
The TransACT network currently covers 8,500 premises, and a further 4,500 premises are planned or already under construction. iiNet announced that the deal would be settled over the next two months subject to Australian Competition and Consumer Commission approval.
Under the deal, TransACT will also complete the construction of pit and pipe infrastructure in new estates until 2017 and then transfer ownership to NBN Co. NBN Co would also get access to ducts across the ACT as part of the deal.
iiNet had been looking to sell the network to NBN Co since the takeover of TransACT in 2011. In addition to the fibre network in the ACT, TransACT also owns a HFC network in Geelong, Mildura and Ballarat. Under legislative changes made as part of the implementation of the National Broadband Network (NBN) policy, iiNet would not have been able to expand these networks, and the company was concerned that NBN Co would overbuild in those areas.
In late 2012, iiNet CEO Michael Malone warned he would undercut NBN Co on prices in those areas if the company did decide to overbuild rather than buying out iiNet’s networks.