The purchase will improve Telstra services between Melbourne, Adelaide and Perth, the telecommunications heavyweight said. "The purchase of the IP1 network assets is a strategic fit with our existing network capabilities," said chief of operations for Telstra's new Technology, Innovation and Product Group, Stuart Lee. "The network utilises state of the art technology and will enable us to meet our capacity needs on this route well into the future."
"The integration of the IP1 network assets will assist us to continue to provide our customers in and out of Perth and Adelaide with high quality, high bandwidth services for many years to come," said Lee.
IP1, which kicked off transmission on its Melbourne to Perth backbone in December 2002, went into receivership in May this year, owing the ANZ Bank AU$30 million.
Media commentators have put the Telstra offer at AU$35 million, which would see the ANZ Bank recover its debt.
It was worth it just to make sure that no competitors got hold of it.