No more room for new national ISPs post-NBN: Internode's Hackett

The fixed-line ISP market is now in a “post consolidation” era and it is not too late to become a national service provider, according to Simon Hackett.

There isn’t much consolidation left to be done in the fixed-line broadband market and it is too late now to become a national ISP thanks to the National Broadband Network (NBN), according to Internode managing director, Simon Hackett.

He was speaking at the Communications Day Summit in Sydney.

At the end of last year, South Australia-based Internode was acquired by iiNet. Both ISPs have had a long history of having achieved high customer satisfaction rates and this was cited as one of the reasons to join forces.

With the acquisition of Internode, iiNet became one of the undisputed “big four” of the ISP industry. Telstra, Optus, TPG, and iiNet now have roughly 90 per cent of the entire fixed-line broadband market base.

Hackett noted consolidation in the ISP market, where larger companies are snapping up smaller players to build scale, has been fast-tracked in recent years. We are now in a “post-consolidation” period as most companies know the NBN favours larger ISPs, he said.

“There isn’t a whole lot of industry left that hasn’t been consolidated in the fixed-line realm - that has happened in a hurry,” Hackett said. “There isn’t much national consolidation left to happen.”

This means there isn’t much hope for those that are considering a future as a national ISP, he said.

“... It is too late, in my view, to become national from scratch and if you do become national you will be doing it essentially by reselling one of the other four guys’ products,” Hackett said. “But for regional players, they are perfectly sustainable.

With the fixed-line broadband market now over-saturated, ISPs must focus on offering services beyond just facilitating Internet access, according to Hackett. Having a mobile strategy and bundling services will be a big part of competing once the NBN is widely available, he said.

Hackett also criticised the Government’s NBN anti-cherry-picking laws.

The Communications Day Summit continues.

2015 ARN ICT Industry Awards: NOMINATE NOW!!!: Nominations for the 2015 ARN ICT Industry Awards are now open. Once again, it is time to NOMINATE NOW!!!

Join the ARN newsletter!

Error: Please check your email address.

More about etworkIinetInternodeOptusTelstra CorporationTPG Telecom

ARN Directory | Distributors relevant to this article

Show Comments
 
Computerworld
CIO
Techworld
CMO

Latest News

May 29
Exclusive Group secures new investment to support continued growth strategy
May 29
Avaya awards its top Asia-Pacific channel partners
May 29
A/NZ Shoppers deserting retailers due to online performance issues: Rackspace
May 29
Fujitsu World Tour 2015: A focus on the healthy human side of IoT (+8 photos)
More News
04 Jun
Websense Data Theft Prevention Breakfast - Melbourne
04 Jun
IM Experience, Sydney
09 Jun
Ascom Nurse Call product launch
10 Jun
D-Link IP Surveillance Training and Certification
View all events