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By | Natalie Apostolou 2nd February 2011 20:34

Oz service provider consolidation speeds up

Honey I shrunk the ISPs

iiNet, Australia’s third biggest ISP, claims it is in pole position to take advantage of the market consolidation that will occur in the lead up to the launch of the National Broadband Network.

According to iiNet’s internal market analysis, consolidation in the sector has accelerated with the four largest providers now accounting for 83 per cent of the fixed broadband market in Australia.

Its stats reveal that in a six-month period the Australian ISP market contracted from some 500 ISPs in June 2009 to 300 in December 2010.

As of June 2010 the Australian Communication and Media Authority's 2009-10 telecoms report stated that there were 444 broadband DSL operators.

iiNet has been doing its best to help shrink the numbers, buying its way through to a chunkier market share over the last 18 months.

Most recently iiNet snapped up Telecom NZ-owned AAPT's consumer arm for AUS$60 million adding 113,000 subscribers. Prior to that it had acquired business focused ISP Netspace for $40m.

iiNet MD Michael Malone said the company will be one of only a few ISPs to fully benefit from the NBN rollout.

“Perhaps half of the premises in Australia have been denied access to true broadband competition, but the NBN changes all that. Not only do we double the available market for our services, but the proposed NBN pricing looks attractive for both iiNet and our customers,” he said.

“As a big player at the forefront of product innovation and customer service, iiNet is best placed to reap the benefits of the NBN world.” ®

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