WA-based ISP, Highway 1, has set-up a new business Ethernet broadband service in its state’s capital.
Called CityEthernet, the service leverages Pipe Networks’ PipeEthernet infrastructure and is isolated in Perth’s CBD. Telecoms operator, Soul/TPG, recently made an offer to acquire Pipe for $375 million.
Highway 1 has bundled the wholesale network with its own peering network to provide shared Internet speeds of up to 100Mbps. The service is burstable, meaning bandwidth can be ramped up on request.
CityEthernet is aimed at SMEs with more than 10 staff.
“We did some research and found no one was offering a burstable Internet service to 100Mbps,” Highway 1 general manager, Nicholas Power, said. “With our product, customers looking for the ability to utilise 100Mbps for the next half an hour or half a day can get it.”
The ISP has yet to sign a solid customer for the service but has planned a marketing blitz to drive interest including door-to-door sales and direct mail advertisements to 4000 businesses in the CBD. It expects to have 300-500 subscribers on-board within the first year.
Plans to expand to Sydney and Melbourne CBDs are on the drawing board but Power conceded the CityEthernet prices for the East Coast may be higher compared to Perth.
“In Perth, cost has been driven down quite low by the high amount of competition,” he said.
Starter 100GB plan is priced at $1500 per month with the largest plan selling for $2350 per month. Users will also have unmetered access to the WAIX network.
Highway 1 was a participant in the Federal Government’s Internet filter trial, which concluded several months ago.