Pacific Internet, one of the region's largest ISPs, has committed to a two-year, $14.5 million agreement with Telstra for access to the telecommunication giant's broadband DSL Layer 2 network.
At present, Pacific Internet has resold access to both Telstra's FlexStream network for home and small business customers, and access to NEC's NEXTEP network for premium-grade business connectivity.
In the past, Pacific Internet managing director Dennis Muscat has been critical of Telstra's outage problems, hence the ISP's relationship with NEC. But now Muscat is convinced that Telstra's new DSL Layer 2 Network is worth a multimillion-dollar investment in new equipment and a new contract with Telstra.
"The FlexStream offering was a finished product that we could buy and sell," he said. "But that was problematic as it offered us no control over the service."
The DSL Layer 2 offering, on the other hand, allows it to have greater control over account management with regards to user sessions. This makes the service easier to administer and manage. The agreement also sees Pacific Internet gain a wider geographic reach. Muscat believes it will allow the ISP to have a national presence, and will make it better equipped to serve the demands of businesses that have multiple locations around the country.
Pacific Internet will soon begin migrating its customers from FlexStream to the Layer 2 DSL network, but said the process would be invisible to users.
The agreement with NEC remains unchanged.