iiNet opens the broadband floodgates

iiNet opens the broadband floodgates

Summary: commentary iiNet's financial woes may prove to be a blessing in disguise to the Australian public. The long-term future of the company is still up in the air in the wake of its weakened fiscal position and new relationships with fellow telcos PowerTel and Amcom.

SHARE:
TOPICS: Telcos, Optus, Telstra
10
commentary iiNet's financial woes may prove to be a blessing in disguise to the Australian public.

Renai LeMay, ZDNet Australia The long-term future of the company is still up in the air in the wake of its weakened fiscal position and new relationships with fellow telcos PowerTel and Amcom.

However, the more important immediate item for consideration is that iiNet's substantial broadband network has been opened to its rivals.

Telcos and Internet service providers can now use that network to sell high-speed ADSL2+ broadband at up to 24Mbps.

All they have to do is place a call to PowerTel's HQ and hook up a deal.

The move will of course allow iiNet to wring greater return from the expensive network and claw back some financial security. But from a customer point of view the implications of the move are much grander.

iiNet's move comes as Optus is simultaneously preparing to allow rivals access to its own broadband network, which is of a similar size.

NEC Australia's NEXTEP DSL wholesale division is also speeding up the ongoing ADSL2+ upgrade of its own broadband infrastructure as part of an access agreement with telco People Telecom.

Now it's said that trouble comes in threes. But in this case it may be three lots of blessings.

As these developments change the Australian telecommunications market over the next six months, customers can expect to see ADSL2+ broadband become far more widely available and much cheaper.

A raft of smaller ISPs and telcos will cosy up to the new wholesale kings and start selling broadband services sixteen times the speeds they were previously offering off the back of Telstra's network.

One thing to expect is steady downward pressure on ADSL2+ prices as more competition enters the market.

The higher speeds will also have consequences for currently edge technologies that are on the verge of becoming mainstream. A sudden upsurge in the use of Internet telephony and video on demand can be confidently predicted.

What do you think the broadband market will look like in six months? Are you eagerly awaiting ADSL2+ services in your area? Drop me a line directly at renai.lemay@zdnet.com.au.

Topics: Telcos, Optus, Telstra

Kick off your day with ZDNet's daily email newsletter. It's the freshest tech news and opinion, served hot. Get it.

Talkback

10 comments
Log in or register to join the discussion
  • "hook me up"

    "All they have to do is place a call to PowerTel's HQ and hook up a deal."

    Did you contact them and ask them if this was the case? My understanding reading alot of whirlpool threads is that Powertel are telling people it's going to be at least 6 months before they will be taking on people under a wholesale arrangement to access iiNet's network.
    anonymous
  • Sure if you can actually get ADSL2

    This will only result in cheaper prices for those you can actually get ADSL2, the rest of us as still screwed. Telstra's hardware which limits homes to getting 1.5mb/s or not getting adsl at all is commonly installed in new housing estates. ISPs have no choice but to use Telstra's overpriced DSL hardware, customers have no choice but to pay high prices. FTTN, don't make me laugh i've been waiting for a broadband connection since 1995.
    anonymous
  • Re: Hook up a deal

    hi there,

    hmm not sure about this one - I will definitely look into this issue. Thanks for highlighting it.

    Kind regards,

    Renai LeMay
    (the author)
    renai.lemay@zdnet.com.au
    anonymous
  • Wireless?

    hi there,

    it's certainly a shame that you can't get broadband. Have you looked into the wireless providers? Some of them are generating some solutions for these "broadband blackspots".

    Kind regards,

    Renai LeMay
    (the author)
    renai.lemay@zdnet.com.au
    anonymous
  • Iinet pricing needs big revamp

    Based on the current published rates, iinet haven't got a snowballs chance of entering the wholesale market. A reasonable comparison with almost any ISP (except Telstra) has them over-priced with poor download allowance. Trying to force users onto over-priced phone plans does not bode well for the prospects of them selling access at rates that anyone will pay.
    anonymous
  • Competative

    Don't know what you are talking about here - I went with iiNet because of their price and download limits. What they charge was better than most of the other ISPs I looked at.
    anonymous
  • Story: iiNet opens the broadband floodgates

    Competitive
    Posted by: Anonymous - on: 13/06/06
    Story: iiNet opens the broadband floodgates
    Don't know what you are talking about here - I went with iiNet because of their price and download limits. What they charge is better than most of the other ISPs I looked at.

    I empathise with the above comments posted by "Anonymous - 13/06/06." I have recently returned from 5 years living in Japan, where the standard, normal ADSL was capable of 100Mbits/sec. Yes, I repeat: normal. While this speed might not have actually been achieved, the ADSL broadband connection in my humble Japanese home often downloaded close to 12Mb/sec. Theoretically for example, it was possible to download a 700Mb video in 40>50 minutes. That's right, often a third of the time required to watch the same hypothetical video. What you do not realise here in remote Australia, is that you are being conned by a few providers, each desiring to be, or to remain: the monopoly. These exorbitantly expensive
    anonymous
  • Story: iiNet opens the broadband floodgates

    Competitive
    Posted by: Anonymous - on: 13/06/06
    Story: iiNet opens the broadband floodgates
    Don't know what you are talking about here - I went with iiNet because of their price and download limits. What they charge is better than most of the other ISPs I looked at.

    I empathise with the above comments posted by "Anonymous - 13/06/06." I have recently returned from 5 years living in Japan, where the standard, normal ADSL was capable of 100Mbits/sec. Yes, I repeat: normal. While this speed might not have actually been achieved, the ADSL broadband connection in my humble Japanese home often downloaded close to 12Mb/sec. Theoretically for example, it was possible to download a 700Mb video in 40>50 minutes. That's right, often a third of the time required to watch the same hypothetical video. What you do not realise here in remote Australia, is that you are being conned by a few providers, each desiring to be, or to remain: the monopoly. These exorbitantly expensive
    anonymous
  • ADSL - What ADSL

    For those of us living in remote rural areas of this great brown land we only dream of getting something faster than dial up, and fast dial up to book. This morrning I tested my connection speed and return a result of 28 kps.
    And you wonder why the bush is desperately wanting ADSL. Oh and forget satelite, $800 just to install the dish, let alone the ongoing cahrges.
    anonymous
  • (was) competitive

    If you said iinet was competative 6 months ago, I would agree with you, 12 months ago they were leaders. But iinet have stood still & now they are expensive, with relatively low download limits (admititly in the mid range 1500 speed range which I currently use) compared to TPG, Amnet to name two.

    Furthermore both TPG & Amnet enable their higher speed where they have there own DSLAM, without bundling an expensive (compared to other non-Telstra offerings) phone service. Go to their web pages, compare the plans.

    It speaks legions of how uncompetitive the iinet phone service must be, that to get customers they resort to bullying their internet customers to bundle their phone service or remain in broadband doldrums. (It reminds me of of Telstra business practices, & I took both my mobile and land-line away from them).
    anonymous