Amcom joins PowerTel in iiNet defence

Perth-based telco Amcom will take a 20 percent stake in beleaguered telco iiNet in a deal that Amcom claims has mutual benefits.

The news comes days after iiNet's finances took a beating with the telco announcing its yearly earnings would be significantly lower than expected.

iiNet subsequently said business and wholesale telco PowerTel would buy a 14 percent stake in the company in a move seen as an attempt to wring greater returns from iiNet's infrastructure investments by selling wholesale services.

In a statement issued today, Amcom managing director Eddy Lee said his company's own iiNet relationship "would enable Amcom to realise increased revenues and for iiNet to realise a significant reduction in costs."

"As PowerTel has very limited network infrastructure in Perth and Adelaide, Amcom's extensive network is better positioned to provide iiNet with access to very high capacity backhaul to 55 of its [telephone] exchanges in these cities," Amcom's statement said today.

"This access will not only substantially reduce iiNet's current backhaul costs but more importantly enable iiNet to scale its business growth with marginal costs and to pursue its [Multi-Service Access Node] MSAN strategy to include IPTV and video-on-demand products."

Advertisement

Talkback 0 comments

Latest Videos

Sponsored content

Power Centre - Content from our premier sponsors

Blogs

  • Chris Duckett Get extensions going in Firefox, redux
    Previously on Null Pointer we looked at getting extensions working in Firefox betas, and that was great until the fine folks at Firefox changed their minds.
  • Array How reliable is IP telephony?
    Have you ever heard a weird kind of hissing, crackling or popping noise when calling someone on an IP telephony line? How rare is the phenomenon these days?
  • Array Forget the NBN, 100Mbps is already here
    Telstra and TransACT will shortly begin offering 100Mbps broadband to many customers. By moving early, the companies have not only raised the bar for Australia's broadband services, but thrown down a challenge to a government that now faces increased pressure to deliver the NBN as promised.
  • More blogs »

Tags

Back to top

Featured