The government has confirmed that NBN Co. will be responsible for connecting new homes to the national broadband network to developments with more than 100 premises and not property developers.

Earlier, property developers clamored for clarification from the government, fearing that they would have to shoulder the costs of installing new fiber cables to the US$36 billion broadband. They will now only pay for the ducts and trenches for installing the cables.

For developments with less than 100 premises, Telstra will handle installation when it finalizes its proposed US$11 billion deal with NBN Co. Communications Minister, Stephen Conroy, said in a statement that the set-up would accelerate peoples' access to high-speed fiber and cut roll-out costs since it was cheaper than installing the network after construction.

The Urban Development Institute of Australia also considered the policy a sensible compromise that would decrease the cost of a newly built home by US$3000. A spokeswoman for NBN Co said the policy will not affect the price tag of the network because any extra costs had already been considered.

The chief executive of the Urban Taskforce, Aaron Gadiel, told The Sydney Morning Herald that many developers had been unsure of whether Telstra or NBN Co would pay for the installation and was threatening to delay housing projects. ''We've had nearly two years of uncertainty. I think finally some common sense has won out,'' he said.