iiNet claims “first place in fibre”

ISP iiNet says it has connected more than 10,000 customers to fibre to the Home (FTTH) broadband across Australia, surpassing the total number of FTTH customers connected to the NBN.

iiNet’s Chief Executive Officer Michael Malone says that more than 8,000 iiNet Group customers are connected to high-speed FTTH broadband via iiNet’s TransACT and Internode networks and wholesale services, and that a further 2,700 are connected through the NBN.

iiNet calls itself “the leading challenger in Australia’s communications industry” and which is the second largest DSL ISP (after Telstra). Malone, one of the industry’s more tireless self-promoters, said iiNet’s recent acquisitions and growth have positioned the company to be the leader in FTTH broadband in Australia.

“We’re all about upgrading the lives of our customers and giving them access to innovative products backed up by our award-winning customer service. When it comes to FTTH, we’re using every opportunity to connect as many Australians as we can to the best internet around,” he said.

“The number of residential customers connected by the iiNet Group also surpasses the number of Australian homes connected to Fibre by any other provider. As well as delivering super-fast broadband to more people than are connected to FTTH through the NBN, we’re now the largest provider of FTTH services in the country.”

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Telstra Signals Game On

Telstra (TLS) has raised the competition heat in the telecommunications sector with its purchase of Adelaide-based ISP Adam Internet, for an undisclosed sum. While only a small acquisition for the giant of the sector, it will make players in the middle tier of the broadband marketplace sit up and take notice, according to brokers. Most see it, with Telstra’s stated aim to run Adam as a separate entity, as a bid to challenge Optus ((SGT)), iiNet ((IIN)) and TPG Telecom ((TPM)). For RBS it is Telstra’s “Jetstar moment”, referring to Qantas’ ((QAN)) well-founded decision to run a budget airline, Jetstar, along side its premium service. For Deutsche, it reaffirms its view that organic growth in this area is difficult. Credit Suisse sees Adam as Telstra’s ‘challenger’ brand and believes it is a significant change for Telstra and the industry.

The acquisition price was not disclosed but speculation puts it at $50-60 million for around 80-100,000 subscribers. Therefore, the acquisition for Credit Suisse, on an 80,000 subscriber basis, implies an acquisition price of 10-12 times FY12 earnings and $550-$660 per subscriber. Credit Suisse believes the deal won’t provoke concerns at the Australian Competition and Consumer Commission, given Adam only has around 1.5% market share. RBS also notes, nationally, it would not be a material reduction in competition. However, Adam could have up to 20-25% of Adelaide subscribers and that may concern the ACCC.

Adam is seen operating as Telstra’s low cost online channel but benefiting from the infrastructure and balance sheet of Telstra. Credit Suisse says it is a sound strategic move by Telstra, giving it a lower-cost channel to minimise retail market share loss as the NBN rolls out over time. Nevertheless, there is risk, as Adam needs to gain presence outside its home market and not get bogged down by its big brother’s bureaucracy. The broker expects Adam to be positioned as a mid-tier operator going head to head with iiNet and Optus, rather than challenging the lower cost providers TPG and Dodo. The reason for this, Credit Suisse maintains, is that Telstra still has the number one retail broadband business (46% market share) and it would have a lot to lose by leading broadband prices down with the Adam brand. Optus and iiNet hold 18% and 15%, respectively, of the national broadband market share. However, in the metro broadband market, the broker estimates Optus and iiNet collectively hold 45%-50% market share. This, therefore, represents a significant opportunity for Telstra to challenge.

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iiNet Combo, Naked and Home ADSL2+ Plans Now Available

iiNet have launched their newest deals which include their great value Mobile or TV Combo bundles and also their new Naked Value plan, all available now through Youcompare.

iiNet’s new TV and Mobile Combos let you combine any of their Home-2, Home-3 or Home-4 ADSL2+ Broadband plans with their new Home Phone 3 (which includes all your standard local and national calls) plus either a fetchTV starter pack or Mobile SIM plan. Their new Combos also come with BoB2™ rental for 24 months and an online protection pack. TV and Mobile Combos start at $99 per month and you can check them out below.
TV Combo $99
Mobile Combo $99

iiNet have also launched their new Naked DSL plans, including ‘Naked Value‘, which gives you 100GB per month for just $59.95. Naked DSL gives users the ability to do away with their home phone service unlike regular ADSL2+ plans which require a full service home phone connection. iiNet’s new Naked DSL plans include:
Naked Value 100GB $59.95
Naked Home-1 200GB $69.95
Naked Home-2 400GB $89.95
Naked Home-3 600GB $119.95

Click on the link below if you would like to view and compare iiNet’s full range of plans now available on Youcompare. Most plans are available with no fixed term contract or sign up to any plan on a 24 month contract and save up to $80 modem costs.

Telstra’s Adam buy will boost competition, say Hackett & Malone

Telstra’s controversial move to acquire South Australian ISP Adam Internet would actually increase competition in the state, iiNet chief executive Michael Malone and Internode founder Simon Hackett said yesterday, despite concerns from Adam Internet customers about the deal.

Telstra’s dominant position in Australia’s broadband market, owing to its historical nature as a vertically integrated telecommunications monopoly, has largely prevented it over the past decade from acquiring smaller players in the sector. However, yesterday the telco announced plans to acquire one of the few smaller players left in the Australian market, South Australia’s Adam Internet. The move will effectively consolidate the state’s broadband market into just three players; Telstra, iiNet (which also owns Internode, which had a strong base in the state) and Optus, which has a strong national presence. It’s not clear to what extent Australia’s fourth major player, TPG, has a presence in the state.

However, according to Malone and Hackett, the move shouldn’t be blocked by authorities such as the Australian Competition & Consumer Commission, which does have the power to query the transaction on competition grounds. “I don’t believe it should be blocked. To the contrary, I think this will be great for competition in South Australia,” Malone said in response to an emailed query. And Hackett added: “We wouldn’t seek to block the transaction (even if we were asked, and I don’t especially expect that we will be).”

Hackett said Adam, with its estimated 90,000 broadband customers, didn’t add a great deal of size to “the Telstra empire” in the larger scheme of things (Telstra is estimated to have about 2.6 million ADSL broadband customers). “But I do believe it’ll polarise competition in SA in a good way, because now there is new and clear point of difference between the traditional rivals in South Australia: Internode and Adam,” the Internode founder, who now sits on iiNet’s board, added.

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Telstra to rollout low cost internet

Telstra Corporation (ASX: TLS) appears to be making a play for low price internet customers, with its purchase today of budget internet provider, Adam Internet, for a reported $60 million.

Telstra plans to support Adam Internet to expand nationally, and the brand will be run as a stand-alone subsidiary of the company. Adam Internet currently has an estimated 90,000 broadband customers, and the acquisition meets Telstra’s strategy of retaining and growing customers, while building growth businesses.

The purchase came as a surprise to many, with most of the mergers and acquisitions in the IT and telecommunications sector coming from second tier companies like TPG Telecom (ASX: TPM) and iiNet Limited (ASX: IIN). Yesterday, Telstra announced a new retail alliance with Boost Mobile, a provider of pre-paid mobile products and services. Boost Mobile will market its products on the Telstra network from early next year, after Optus – owned by Singapore Telecommunications (ASX: SGT) announced that it would no longer licence services to Boost Mobile.

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Oz Attorney General says NO to SOPA

The Australian Attorney General’s (AG) office has said that our government are not considering any similar legislation in relation to the current SOPA (Stop Online Piracy Act) and watered down counter act PIPA (Protect Intellectual Property Act) Bill which is to be voted on in the US next week.

In case you’re not up-to-date with this issue, I can tell you that the Bill fundamentally represents a form of legislation that could be introduced in the United States shortly to combat the infringement of copyrighted material (piracy).

Why would this Bill be a bad thing if its to counteract illegal Internet proceedings?

The force behind the push of this Bill are a handful of powerful multimedia companies (namely movie studios and record companies) who say they losing commercial revenue because of the lack of adequate online piracy laws. However many believe if a law that these companies wanted to see legislated was introduced, it could have monolithic consequences.

Those against the Bill are concerned that legislation of this nature would unleash widespread and unaccountable censorship involving non US websites that would block websites at the domain level and that it would greatly interfere with the domain name system (DNS) – the core of the Internet. More importantly, the believe this law could contain measures that would impede online freedom of speech, websites, and internet communities. There is also the argument that suggests a lack of inadequate safeguards mechanisms would not be effectuvely put in place to protect websites and user generated content.

The Attorney General stated that in Australia it should be up to content owners and ISP’s to work together to develop a suitable outcome to address online piracy and that discussions between ISPs and copyright owners were facilitated by the government. This was after ISP iiNet recently won a court battle against a copyright conglomerate of film studios called Australian Federation Against Copyright Theft (AFACT). At present, an appeal has been lodged by AFACT in the high court of Australia which has yet to be concluded.

Australian Greens Party communications spokesperson ‘Scott Ludlam’ recently asked the government to oppose the Bill as it could not only jeopardise the NBN project, however, along with the negatives as already described, Mr Ludlam also went on to suggest that there should be more representation be in place other than the ISPs and rights holders who both hold commercial interests only as there’s many other parties who will be greatly affected with a potential dumbed-down version of the law in 12 months time.

“Isn’t it interesting that the people that they’ve invited into that forum are the rights holders and carriers, and they appear to have left out the creative people who make the content and the audience …The people who actually matter in that debate aren’t in the room. They’ve invited the intermediaries and the people with commercial interests,”– Scott Ludlam

“We should be in that room, in the copyright debate; otherwise, we are going to get some kind of dumbed-down Australian-flavoured SOPA — 12 months after it resolves itself in the United States, it’ll pop up here; you can absolutely guarantee it.”– Scott Ludlam

“Do they recognise that there will be little purpose in investing tens of billions of dollars in the NBN if the US copyright industry cripples the medium itself?” – Scott Ludlam

Read more at – No SOPA for Australia: AG

TPG sizing an iiNet acquisition

Conjecture continues to grow on a possible acquisition as industry analysts are predicting that an iiNet takeover by TPG makes increasing strategic sense due to the reaffirmed earnings by TPG yesterday.


The forecast for EBITDA is believed to be around $250-270 million and TPG have also indicated that their debt would be reduced by $100 million for the 2012 financial year. If a transaction were to occur, the end result has the potential to take up about 20% of the market share. However it’s likely that any type of acquisition would take quite some time to undertake.


Read more at – Speculation grows over iiNet takeover as TPG reaffirms guidance, renegotiates debt


Updated on: Nov 22, 2011 by Admin

In October this year TPG stealthily purchased a 4.4% share of iiNet which now sits at a healthy 5.1%. TPG stated they had no intention other than to own shares in iiNet for strategic reasons. Then again, what other purpose would there be for a rival Telco to buy shares in a competitor other than having fundamental intentions to apply a takeover at some stage?


iiNet CEO Michael Malone said he has not met with TPG’s management in relation to an acquisition and further stated that the ACCC places a 20% market share threshold which would make it difficult for companies who have a greater share than this to buy iiNet. That would strike out Telstra and Optus, however TPG would probably sit on the borderline. In addition to ACCC conditions, a takeover such as this would also require a public inquiry and may need to be examined by the Federal Government.


Whether TPG are actually considering an acquisition or not, there’s certainly signs there that flag this possibility. TPG’s 5.1% stake is a fairly obvious sign and one that is probably enough to cause Michael Malone and iiNet some concern.


Read more at – TPG buyout to require public inquiry, says iiNet

iiNet acquire TransACT

iiNet has requested a halt on ASX trading as it positions’ itself to takeover TransACT in a deal believed to be worth between $60-$80 million.

It’s been no secret that iiNet was seeking to acquire further smaller ISP’s on the east coast in order to give the Telco a greater footprint in the eastern states while the purchase of TransACT is also expecting to further penetrate its reach into government and corporate sectors.

As the Telco is already the second leading ADSL2 provider in Australia behind Telstra, this latest acquisition will simply further verify iiNet as the outright third largest Telecommunications provider by far.

Both iinet and TransACT are prefferred suppliers of Youcompare.

The transaction will also witnesses approximately 300 TransACT employees and another 80,000 customers make the transition across to iiNet ever growing list of assets and resources.

Read more at – iiNet rumoured to be buying TransACT

Melbourne based ISP Supernerd purchased by iiNet

Joining iiNet’s ever growing and impressive list of ISP acquisitions is Melbourne based Internet Service Provider Supernerd.

The purchase was made earlier on in September with the migration of all Supernerd’s existing residential client base across to iiNet’s network well underway. Supernerd customers still have the option of retaining their existing email address and inbox services, although the respective website is already displaying iiNet’s acquisition information and brand along with relocating links to iiNet’s website.

The Supernerd ISP now joins Westnet, Netspace and AAPT’s residential customer base as iiNet’s other major purchases over the past several years. It’s expected that only Westnet will retain their brand whilst all other company brands will eventually be dissolved after the completion of migration stages.

Compare iiNet broadband plans here.

iNet NBN pricing sets the benchmark

Leading Australian broadband Internet provider iiNet are paving the way with ‘more realistic’ pricing plans for residential access to the National Broadband Network.

While some other providers have already released their NBN pricing models that consist of expensive plans upwards of $180-$200, iiNet have unveiled a simple cost effective model that significantly undercuts many of its rivals. In fact iiNet’s most expensive plan comes in at under $100 and will give consumers 1000GB (1TB) of data with speeds up to 100Mbps .

Although it’s not expected that Optus and Telstra will follow suit, however the NBN pricing move by iiNet will be seen as very aggressive and will give the other respective Telco’s something to seriously think about.

iiNet’s NBN offerings consist of three simple peak/off-peak plans – 1.$49.95 40GB (20GB + 20GB) 2.$59.95 200GB (100GB + 100GB) 3.$79.95 1000GB (500GB + 500GB) using the 12/1Mbps speeds option.

There are three other speeds options to choose from which all carry an incremental additional charge – 25/5Mbps, 50/20Mbps & 100/40Mbps. The highest you can pay is $99.95 per month for 1000GB data limit on the fastest NBN optical fibre speed available at 100/40Mbps.

These prices may not be necessarily cheaper than the current ADSL, Cable and Mobile Broadband products in the market today, but they are more or less comparable to such and certainly a step in the right direction.

Compare iiNet broadband plans here and start saving more on your broadband bills today!

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