A statement from LEDC said this deal would:

• Decrease reliance on backhaul networks to support local businesses;
• Achieve higher bandwidth and improved download speeds; and
• Provide network hub points across the region offering greater choice of network providers and help to establish greater competition.

Under the agreement, officially known as the Wholesale Broadband Agreement with NBN Co for Facilities Access Service, LEDC will focus on accelerating connectivity to digital infrastructure across regional Australia to reduce the reliance on backhaul networks so that local businesses would be able to achieve better bandwidth.

Apart from this, LEDC will also establish dark fibre builds directly into the NBN's points of interconnect from each of its regional data centres improving connectivity and reducing network latency.

The locations of LEDC's data centres in regional NSW. Supplied

LEDC chief executive Chris Thorpe said: “At present, every digital transaction that happens in regional Australia must go back and forth to the data centres all located in the major metro cities on the backhaul networks. This creates a bottleneck scenario, slowing things down, and compromising the digital experience for regional Australians.

"NBN Co facilities access will reduce the backhaul bottleneck. We’re already building data centres across the regions bringing the opportunity for content and service providers to deliver services locally, so with NBN Co opening up that last mile with the local connectivity piece, the entire digital experience – everything from home Internet usage to workplace data exchange – will be improved.

"Content download speed will be faster, and latency will be reduced. This will help to begin levelling the playing field from a digital infrastructure point of view.”

A survey conducted recently by the NBN Co shows that there is increased migration taking place from cities to the regions.

“COVID-19 has laid the groundwork for mass regional migration and we think that better broadband connectivity might provide that tipping point,” said Thorpe. “This will have positive flow-on effects for regional economies and help ease over-population in major cities.

“IoT is driving change in industries such as healthcare, agriculture, construction, logistics, and forestry. But its ubiquity in regional areas has been limited by unreliable broadband connection, which can interrupt data exchange and collection.

“By opening up connectivity in regional locations, the alliance could make wider spread IoT usage a viable reality, with significant benefits to these industries and the broader economy.”

LEDC's first measures will be in 14 locations in NSW, with Victoria and Queensland to follow.