Internet LAN cables are pictured in this photo illustration taken in Sydney June 23, 2011.
Internet LAN cables are pictured in this photo illustration taken in Sydney June 23, 2011. Australia cleared a key hurdle on Thursday in setting up a $38 billion high-speed broadband system after phone operator Telstra agreed to rent out its network for the nation's biggest infrastructure project in decades. Reuters/Tim Wimborne

The Australian Competition and Consumer Commission has approved the revised deal between NBN Co and Optus. The approval means an $800 million dollar cable network allocation to acquire Optus’ broadband network and TV.

In the revised agreement, NBN will slowly acquire ownership of the HFC network. The company also plans on connecting 4 million businesses and homes to high speed broadband network.

ACCC Chairman Rod Sims said in the organisation's official statement: “The ACCC’s assessment turns on the extent to which Optus and NBN Co are likely to compete absent the proposed acquisition." The approval came following the condition that both parties will adhere to their original arrangement wherein Optus will decommission its hybrid fiber-coaxial network, or HFC network. ACCC authorised the original arrangement back in 2012. However, upon evaluating the revised arrangement, the ACCC came to another decision otherwise on the existing authorisation.

“The ACCC had regard to the need for regulatory certainty and its view that the balance of benefits and detriments identified by the ACCC in 2012 was not likely to have changed, despite policy and technological changes since then,” Sims added.

As part of the arrangement, Optus customers using HFC network will transfer to NBN services since both companies will share network bandwidth for the next 15 years.

Business Insider quoted Optus vice president of corporate and regulatory affairs, David Epstein, saying, “It’s the right decision for moving forward the roll out of a multi-technology NBN, and the right decision for accelerating Australia’s transition to a more competitive, world class broadband future."

The approval came two month after NBN also gained ACCC's approval on Telstra’s copper and HFC networks. The new deals will allow the national broadband network to offer fast Internet speeds at a more affordable rate.

“We look forward to working with NBN Co on making the transition smooth and timely,” Epstein added.

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