TransACT will add half a terabit-per-second to its fibre network capacity as part of a network upgrade.
It would allow the Canberra utility to "support thousands more new services", meet "ever-growing demand" and offer higher levels of service assurance, said chief executive officer Ivan Slavich.
It was expected to be completed by early next year.
TransACT offered metro and point-to-point Ethernet services over its fibre network at symmetrical speeds between 5 Mbps and 10 Gbps.
It catered to backhaul of TransACT's access equipment including their GPON optical line termination units and VDSL2 DSLAMs.
H-VPLS fixed the scalability issues of VPLS, which allowed carrier-class services to be deployed over an Ethernet network.
"The selected solution will enable TransACT to cost-effectively scale their network and expand services to business customers by extending VPLS to the access," Telco Systems said.
"It is based on Telco Systems' T-Marc demarcation devices which reside at the customer premise, and T-Metro 7124 aggregation switches which collect the customer traffic and map them into H-VPLS services in the access network.
"T-Metro 7224 10Gig service switches act as a full provider edge switch handling most of the VPLS switching while maintaining QoS and SLA, offloading many of these tasks from the core switch."