Amcom joins PowerTel in iiNet defence

Amcom joins PowerTel in iiNet defence

Summary: Perth-based telco Amcom will take a 20 percent stake in beleaguered telco iiNet in a deal that Amcom claims has mutual benefits. The news comes days after iiNet's finances took a beating with the telco announcing its yearly earnings would be significantly lower than expected.

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TOPICS: Telcos
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Perth-based telco Amcom will take a 20 percent stake in beleaguered telco iiNet in a deal that Amcom claims has mutual benefits.

The news comes days after iiNet's finances took a beating with the telco announcing its yearly earnings would be significantly lower than expected.

iiNet subsequently said business and wholesale telco PowerTel would buy a 14 percent stake in the company in a move seen as an attempt to wring greater returns from iiNet's infrastructure investments by selling wholesale services.

In a statement issued today, Amcom managing director Eddy Lee said his company's own iiNet relationship "would enable Amcom to realise increased revenues and for iiNet to realise a significant reduction in costs."

"As PowerTel has very limited network infrastructure in Perth and Adelaide, Amcom's extensive network is better positioned to provide iiNet with access to very high capacity backhaul to 55 of its [telephone] exchanges in these cities," Amcom's statement said today.

"This access will not only substantially reduce iiNet's current backhaul costs but more importantly enable iiNet to scale its business growth with marginal costs and to pursue its [Multi-Service Access Node] MSAN strategy to include IPTV and video-on-demand products."

Topic: Telcos

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