Powertel and Davnet have announced a joint venture in which Davnet has purchased access to Powertel's expansive fibre optic network.
Under the agreement, Davnet will be able to access Powertel's 2400km network, giving Davnet high-speed broadband access to buildings in the key central business districts of Sydney, Melbourne and Brisbane. Powertel's network currently connects 300 buildings in these three areas, and is connecting an additional six to eight every week.
"It is a wholesale agreement in which we are helping Davnet when they need to use our infrastructure or access to get to their customers," said Powertel spokesperson Sonya Crosby. Neither party would divulge the exact financial terms of the agreement.
As part of the agreement, Powertel will gain access to Davnet's international capacity as an interim measure until the Southern Cross network is operational.
Neither party is too concerned that they may be competing for the same customers.
"In theory, we could be competing, but [essentially] the user doesn't care whose service they get, as long as it appears bright and shiny when they need it," a Davnet source said.
"It is inevitable that in some cases we will be competing, but I think that the service each of us offers differs significantly," said Powertel's Crosby. "We do full data and voice, whereas they focus on Internet connection."