15,000 Internode users to access to improved data plans, Naked DSL offerings

Australian internet provider iiNet has snapped up Internode, with the two progressive ISPs joining forces as the NBN rollout accelerates.

The $105 million deal will be completed by 29 February 2012, making iiNet the clear number two in the Australian DSL market behind Telstra. The deal leaves iiNet with around 900,000 customers, making it Australia’s third largest ISP behind Optus once you allow for Optus’ cable and DSL customers. The deal comes hot on the heels of iiNet’s acquisition of Canberra’s TransACT network.

Internode will remain a separate business unit, retaining the Internode name and with founder Simon Hackett at the helm. The network merger will see iiNet and Internode customers currently connected to Telstra DSLAMs, via Telstra Wholesale, migrated to iiNet DSLAMs where possible. This will give 15,000 affected customers access to improved data plans, Naked DSL offerings and the multi-casting features required to offer the full Fetch TV service. iiNet will be able to offer Internode customers extra Fetch TV channels as well as access to FreeZone unmetered content.

Synergies between the two ISPs will also help them tackle the National Broadband Network rollout and strike better online content deals, says iiNet chief executive Michael Malone.