Minister for Communications, Urban Infrastructure, Cities and the Arts, the Hon Paul Fletcher MP, said that work on the 200,000 premises included in the first two tranches is underway.

He added that NBN Co was on track to upgrade two million homes by 2023.

"To deploy these network upgrades, NBN Co will work with its construction and delivery partners to design and construct local fibre networks in Ulladulla, Batemans Bay, Gerringong, St Georges Basin and Worrigee passing at the street level in areas connected to the National Broadband Network's Fibre to the Node (FTTN) technology," Minister Fletcher said.

Senator for NSW, Jim Molan said that as well as the benefits that faster internet can provide, this investment by NBN Co would provide a much-needed boost to economic activity and employment on the South Coast.

"The commencement of these works by NBN Co will create jobs for the South Coast community and support local businesses by allowing them to take advantage of the benefits that ultrafast broadband can provide," Senator Molan said.

"Households and businesses in Ulladulla, Batemans Bay, Gerringong, St Georges Basin and Worrigee will be able to access NBN Co's fastest internet plans of up to 1 gigabit per second, which will allow for 4K streaming on multiple devices concurrently, enhance the online gaming experience and better support Australians working from home."

A number of factors were considered in selecting areas in this second stage of investment, including the predicted take-up of higher-speed services, while also maintaining a proportionate state and regional mix of locations.

For more information on the NBN, go to www.nbnco.com.au