iiNet is to buy smaller ISP Netspace for $40m, a move that will take it to a total of 520,000 broadband Internet customers, in excess of $0.5b in revenue and give it a 12.4 percent share of the fixed Internet access market.
iiNet's acquisition of Netspace is being tipped as the first of several in a major rationalisation of top end ISPs, but there is likely to be little impact on almost 400 smaller ISPs serving mostly regional customers, according to wholesale provider IspONE that serves many of these.
iiNet is now Australia's second largest internet service provider as far as ADSL connections go and a technically sound ISP, going by by my own experience. But when it comes to the other sides of its business, like support and sales, iiNet is no better than any other ISP - in fact, in my view it is much worse than many.
Just a week after it claimed it was in pole position to take advantage of the National Broadband Network, and in the middle of "its biggest advertising campaign ever", iiNet has confirmed it recently conducted a round of redundancies that predominantly hit its head office workforce.
On the eve of a the High Court hearing an appeal application from the movie studies that have been waging a long running legal battle with iiNet over copyright issues, iiNet has called for the industry as a whole to get together and make content legitimately available online.