The move, effective immediately, follows PowerTel's recent investment of a 10.3 percent stake in iiNet after the Perth-based telco reported a significant drop in earnings before interest, tax, depreciation and amortisation (EBITDA).
"iiNet and PowerTel announced a strategic alliance last week, giving the two companies access to each others infrastructure, and giving PowerTel the exclusive ability to deliver wholesale access to iiNet's ADSL2+ network," iiNet said in a statement issued to the Australian Stock Exchange this afternoon.
"iiNet and PowerTel are going to be working very closely together in the future," said Broad in the statement.
"We will minimise duplication and improve the utilisation of existing equipment. We don't want to have two of Australia's top telecommunications companies racing each other into exchanges to rollout the same equipment," said Broad.
The statement said the two companies "are expected to complete a joint network plan by August this year."
But Broad is not the only one looking to get a foot onto iiNet's board.
On May 31, fellow carrier Amcom said it would take a nearly 20 percent stake in iiNet and seek to have two board seats.
iiNet executive chairman Peter Harley has reportedly said Amcom's claim would have to wait until the next meeting of iiNet's board.