A revamped deal between the NBN Co, Telstra and Optus covering the roll-out of the government's hybrid broadband network is a milepost in a long journey, but an important one.

Cabinet was set to consider the new deal on Tuesday. Telstra's board and Optus's parent, Singtel, were in the wings, ready to approve it once cabinet agreed. Announcements are expected as soon as Sunday, and contracts as thick as old Telstra telephone directories should be signed before Christmas.

NBN Co has struck an important deal with Telstra and Optus. Credit:Damien White

The Australian Competition and Consumer Commission will take months more to review the contacts, but agreement on co-operation and terms is a breakthrough.

As part of the deal, NBN Co will acquire the hybrid fibre coaxial (HFC) cable networks that Telstra and Optus rolled out in the mid-90s with their pay TV offers. It will upgrade and merge them, fill gaps in their coverage, and use the HFC to accelerate its broadband roll-out.