iiNet said the move to rejoin the process was prompted by the company's lack of capacity to offer fast transfer when servicing broadband accounts through their own DSL access multiplexers (DSLAM).
The DSL rapid transfer process allows customers to switch between ISPs with low cost and without having to go through the disconnect/reconnect process.
iiNet said it now uses both the Telstra Wholesale DSL network and their own DSLAM network, but warns customers that the type of network used to service broadband accounts may change at any time.
iiNet said the company will continue to use the DSL transfer process in the meantime, but advised customers that they should not rely on the availability of the feature.
"We have found that for most customers, [fast churn] is not important. But if DSL Transfer is important we ask customers to please assume that it will not be available," iiNet said.
Although, iiNet said that only a small number of their customers are concerned with the DSL transfer process, they have started talks with Telstra Wholesale and other industry participants to look for a solution.
Telstra's "fast churn" method only works for customers on Telstra DSLAMs.
"What we would love to see is a procedure that allows ADSL customers to seamlessly transfer between providers, regardless of whether the provider uses the Telstra network or their own network - like us. That way, the provider with great value products and the best service won't have any technical barriers to signing up new customers," iiNet said.
iiNet maintains its reduced set up fee of AU$39 to iiNet customers signing up from other ADSL providers.
iiNet managing director Michael Malone told ZDnet Australia Telstra was interested in negotiating with iiNet a cross-platform churn process (XPT).
He said Telstra had had a change of heart because the telecommunications company now realises "there is going to be a requirement in the market for an XPT, especially with Primus' announcement [that it will] start its own network."
"The XPT will include voice services as well, and not only DSL services so this is a very important process to get right," Malone said.
He added that there is no "exodus of customers" from iiNet because of their original announcement to cancel participation with Telstra's fast transfer.
"My honest view is that for most customers, [fast churn] doesn't matter and is not a decision factor for most people in choosing an ISP. It's irrelevant to majority of the customers. If we've been concerned about customers leaving iiNet, we would have corrected the decision two to three weeks ago when we've had the change to save those who were planning to leave," Malone said.
He added that although Telstra is willing to talk about a cross-platform churn process, customers should not expect it to happen overnight.
"Three weeks ago we wouldn't have been able to have these talks with Telstra. We don't know when it will finally happen since it's never been done before but if I'm being optimistic, I'd say six months from now. Once the XPT happens, there will certainly be room for reduction of cost and it guarantees that customers will have a port to go to," Malone said.