A major Australian internet provider has opted out of the National Broadband Network's new wholesale agreement, slamming its service delivery record.

The wholesale agreement is the deal which allows internet service providers (ISPs) to sign customers up to services on the NBN.

Today, iiNet, the country’s third largest ISP, has decided not to get involved in the new agreement due to the extremely low rate of success in the past.

iiNet reports the NBN routinely hits less than 80 per cent of its new connection commitments to customers.

The deal allowing NBN services to be sold by third parties comes into effect at the beginning of March, and NBN Co says so far 27 telecommunications companies have signed-up to be providers.

IiNet's chief regulatory officer Steve Dalby says the company does not want to be responsible for NBN Co's failures.

“Each connection appointment missed and every fault not fixed on time generates CSG [customer service guarantee] payments and potential TIO [Telecommunications Industry Ombudsman] charges, which iiNet would be liable for,” he said in a statement to the ABC.

“In other words, we would be responsible for NBN Co's future delays and network failures. This is unacceptable.”

iiNet added that its decision does not in an way affect current customers, and that it still supports ubiquitous high speed internet for Australia.