Under the new initiative announced by the government in Port Macquarie on September 22, businesses will be able to access premium-grade NBN business fibre services at no upfront build cost to their retail service providers, boosting economic growth in regional and metropolitan Australia.

NBN Co's Business Fibre Initiative is part of a $700 million package to transform the accessibility and affordability of business-grade fibre and allow small to medium businesses to embrace opportunities for growth.

The initiative will include 85 business fibre zones located in regional areas. It will also reduce wholesale pricing by up to 67 per cent for businesses in zones outside metropolitan centres.

The first 130 business fibre zones have been announced by NBN Co and include locations across the country from Rockhampton in Queensland to Bunbury in the west, Port Macquarie and Coffs Harbour in New South Wales, Mount Gambier in South Australia and Devonport in Tasmania.

Minister for Communications, Cyber Safety and the Arts, the Hon Paul Fletcher MP, said the government is backing this significant investment into Australia's small and medium businesses, which will be critical to our economic recovery from COVID-19 and to the government's goal for Australia to be a leading digital economy by 2030.

"During this global health crisis the NBN has proven itself to be a vital national asset. It has supported Australian businesses as they have innovated and adapted to digital operating models to overcome the challenges of the pandemic and enabled families and friends to keep in touch virtually," Minister Fletcher said.

"The government understands the importance of continued investment into Australian businesses and digital connectivity. That's why we are making affordable ultra-fast broadband available to more businesses Australia-wide."

Finance Minister Mathias Cormann said the additional investment into NBN Co's Business Fibre Initiative will enable businesses to boost their digital capabilities and create thousands of jobs.

"It will also boost the productivity of businesses within each of the 240 business fibre zones. This will include 14 zones centred around major hospitals, which will help facilitate the formation of globally competitive health precincts," he said.

"By providing businesses and essential health services with dedicated fibre at affordable prices, NBN Co is boosting access to digital productivity tools and providing significant new opportunities for innovation."

Minister for Regional Communications, the Hon Mark Coulton MP, said regional businesses will benefit from the transformation to NBN wholesale business pricing, which will bring regional pricing into line with capital cities.

"Businesses in regional Australia are resilient and innovative; they've met the challenges of COVID-19 by expanding their digital footprint and adapting how they do business and this reduction in costs will further help those in the regions," Minister Coulton said.

"The new business fibre zones will connect regional businesses to staff, patients, suppliers, business partners and customers wherever they're located, putting them on an even playing field with their metropolitan counterparts."

Member for Cowper, Mr Pat Conaghan MP, welcomed the announcement.

"The launch of the business fibre Initiative will support business critical applications including cloud storage and online collaboration helping our local businesses stay competitive in the digital age," Mr Conaghan said.

NBN Co will allocate $50 million to help expand these business fibre zones by co-investing with local councils and state governments.