A spokesperson for Pipe Networks' potential new parent, SP Telemedia, has pointed to Optus as a prime example of how it can successfully operate a wholesale and retail telco.
Pipe Networks' chief, Bevan Slattery, may have found his "cash-out" door from the company that helped internet service providers snub Telstra, but many of those customers are not happy that a direct competitor could now control it.
SP Telemedia, owner of TPG and Soul internet service providers, has announced its intention to acquire Pipe Networks for $373 million.
Pipe Networks and SP Telemedia have both gone into a trading halt this morning, pending announcements to be made later in the week.
Fears that laptops issued to students under the Digital Education Revolution would be "sold at the pub" have proved unfounded, with the NSW Department of Education and Training (DET) claiming it has suffered six losses to date.
The potential acquisition of Pipe Networks by SP Telemedia has raised the question about whether vertically integrated backhaul providers will mean higher wholesale prices for ISP customers.
The proposed buyout of Pipe Networks by SP Telemedia is an absolute travesty for Australia's telecommunications industry and will be overwhelmingly negative for customers, Pipe Networks staff, shareholders and the industry as a whole.
While everyone was distracted by the NBN, a revolution was under way in the supply of fixed line broadband.
The obvious candidates for consolidation in Australia's telecommunications sector are the 170 internet service providers that are scratching to make a living, but others include Dodo, M8 Telecom, Macquarie Telecom and Eftel.
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