Pursuant to its aim of delivering wireless services to parts of Australia yet to be reached by fibre-optics network, the National Broadband Network Company (NBN Co) inked a million-dollar deal with satellite television provider Austar.

NBN Co said on Thursday that the $120 million agreement calls for the purchase of wireless technology spectrum channels that is part of the government-run business to roll out the country's premier wireless services by middle-part of next year.

According to Austar chief executive John Porter, the deal between the NBN frontline firm and his company would bring in considerable benefits to Australians, specifically those located in the regional areas of the country.

In his statement released on Thursday, Porter expressed confidence that "NBN Co will build broadband services in regional Australia very efficiently with consumers outside metropolitan markets finally gaining access to world-class broadband services."

The deal between Austra and NBN Co would enable the latter to acquire Austra's 2.3 gigahertz and 3.4 gigahertz spectrum licenses for $120 million, with some $62 million of the agreed amount to cover for the former's existing debts while the remaining money serves as payment for the spectrum licenses.

The nationwide NBN roll out is looking to hook up 93 percent of Australian households to its fixed-line optical fibre services while the remaining seven percent will be given internet access via wireless and satellite technology, most of which are situated on remote and regional areas.

The new deal was struck amidst questions arising on the viability of the NBN business plan in light of Telstra's announcement earlier this week that its 4G wireless is geared up for deployment later this year yet the federal government had insisted that wireless technology would not be able to surpass or even equal the speed that fibre optics network could offer.