NBN Co has signed a $400 million deal with Arris Group to upgrade Telstra and Optus' hybrid-fibre coaxial networks for use as part of the national broadband network. The company today confirmed Arris had been appointed as the supplier for the key HFC deal, beating rival telecommunications equipment vendor Cisco.

Under the agreement, Arris will install new cable modem termination systems (CMTS) and replace retransmission gear in 230 exchanges over the next three years. NBN Co bought the HFC networks from Telstra and Optus late last year as part of its revised approach to the national broadband network.

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