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Posts Tagged ‘aapt’
Analysis, Featured, Telecommunications - Thursday, April 12, 2012 11:25 - 25 Comments
Have iiNet’s acquisitions helped or harmed competition?
analysis Has iiNet’s ongoing series of acquisitions harmed or helped the development of market competition in Australia’s telecommunications sector? It’s a difficult and complex question which will have a dramatic impact on the development of competition under the National Broadband Network scheme — and one which we will attempt to answer in this in-depth analysis of the ISP’s major buyouts over the past few years.
In November 2011, iiNet regulatory chief Steve Dalby made what some at the time considered to be a rather audacious claim: That his company’s lengthy and ongoing habit of buying up almost every rival ISP it possibly could in the Australian market had not hindered the level of competition in Australia’s telco sphere — but rather, it had helped it. “It’s just the opposite,” Dalby wrote in a comment on Delimiter at the time, responding to a claim by this writer arguing that iiNet’s activities, which has seen it acquire half a dozen of Australia’s major ISPs over the past half-decade and dozens of smaller firms before that, had contributed to the decline of competition in the sector. “We are strengthening competition,” he added.
Dalby wrote that in many cases iiNet had bought companies which had been “in decline and unable to compete” or unable to invest in their brands. Such companies, he said, had been unable to keep up with the trend of bundling content and telco services together through investing in their platforms, and had proven unable to keep their costs at a level which would allow them to put pressure on market giants such as Telstra or Optus.
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