Telstra Reckons TPG Might Buy Out iiNet

Acquisitions. I never knew they were infectious. Yet, going by Telstra's recent communications to its staff, they may very well be, with the telco informing its employees that TPG could buy up iiNet, a move that would see the company leap into second position among Australia's internet providers.

Hot on the deal-sealing heels of iiNet's purchase of Internode, Delimiter caught wind of speculation by Telstra on iiNet's future. TPG already owns just over seven per cent of iiNet, so if it were to take the company under its wing (or into its maw, depending on your outlook), it wouldn't be unprecedented.

Here are the exact words from Telstra, as provided by Delimiter:

"iiNet’s $105 million acquisition of Internode, announced just prior to Christmas, will see it gain 190,000 subscribers, and spearhead TPG Telecom into third place among broadband providers behind Telstra and Optus," the company's update read. "In recent months, TPG Telecom has been building a stake in iiNet, which, according to market speculation, could be a precursor to a full takeover."

Delimiter notes that while the Telstra communiqué mentions "third place", the outlet's own calculations put TPG in second place, post-acquisition.

There's certainly been a number of players in Australia's ISP history — I myself once being a customer of iGreen many years ago, which eventually became People Telecom. But consolidation is a natural process and I'd prefer it to occur all in one go, like a giant, business-buying band-aid.

The Delimiter article suggests that a merging of TPG and iiNet wouldn't be the smoothest in the history of takeovers; the companies go about their business in different ways, with TPG's clinical approach potentially clashing with the laid-back and jovial style of iiNet.

iiNet CEO, Michael Malone, speaking with Delimiter, said any takeover would have a big enough impact on the industry that the ACCC would likely be involved.

[Delimiter]


Comments

    And how? TPG is so dodgy. Constant dropouts, high latency. Can't believe people sign up to their crap.

      This has been my excperience with them as well. Dodgy. It's exactly why I switched to iiNet

      you have to laugh at some of the simon hackett yes boys , dont know how hypocritical they look when they say telstra is spreading fud, but yet their so called honest man hackett said iinet wasnt going to take over internode.

      and look what happened

    I really hope this doesn't happen. Been with iinet for over 12 years now and there has been a reason for it.

    Please God No, iiNet are great, I moved to them to get away from TPG

    I'm an Internode customer and accepted the iiNet takeover, as at least they had similar philosophies. But TPG, with its year-on-year poor ratings? Please, no.

    Just to emphasise, you're reporting/repeating Telstra's speculation that one of their competitors might buy out one of their other competitors. It's probably newsworthy that Telstra analysts realise that Telstra even has competitors. Thanks for sharing.

    And that eliminates any real competition and prices are due to rise and d/l limits will drop...

      +1 like we need less competition

    Good latency, No drop outs, fantastic service.

    - Telstra

    Thats right everoyne.. if TPG is going to be your master there is only one other ship to jump to. Come back over to the dark blue and orange side.

    A damn sight better than Optus with its useless price strategy and its lop sided data plans with idiotic staff. Stupid shop and spastic animals.

    I hate everything about Optus and its stupid approach. I see all the time poeple walking in there, All the nuffers lap it up like.. well kinda like people who buy Apple

      "Thats right everoyne.. if TPG is going to be your master there is only one other ship to jump to. Come back over to the dark blue and orange side."

      telstra and its outsourced indian tech support?, no thanks.

    i'm extremely happy with TPG - what am i missing here guys?

      Not sure either. I have had TPG at three different addresses / exchanges for a total of 6-7 years. In which time time I can remember two outages for a total of about 50 hours.

      As usual, you only hear about the bad experiences.

      MM

      Agree ,

      I have TPG at 2 places, and barely any problems.

      Why would i go iinet when they cost sooo much more, and the speed is not that much better here, i play with very low ping in bad company 2 and battlefield 3. with unlimited downloads. For the same price, iinet offers 10gig on 10 gig off in my area.

      Their support has been a PITA when I called them in the past, but in two years we were happy with them, especially in one suburb where the speeds were really quite good.

      I have little doubt they probably do oversell the service and as such, some areas will be affected more than others but my experience was quite good with them.

        TPG is 10/10 for me. TPG have no exchanges in my city so it ends up using Telstra's hardware with TPG's $70/month for unlimited 8Mb. Only Internet problems have been with the modem and once it was replaced it has been smooth sailing.

    Never had a problem with Exetel and great prices no bullshit.
    Let them play their games I will NEVER use Optus again for anything.

      +1 to Exetel. Especially these days with their excellent support centre and very low call wait-times. They are a great ISP with generous offers who listen to their customers to improve their business.

      Competition is a good thing for us customers, so I'm always saddened to hear about yet another takeover.

    GOD no TPG is awful iinet will go down the drain if TPG gets their mitts on them.

    Ugh, I hope not.
    I would probably move to Telstra if this happens. Can't believe I'm saying that.

    I was under the impression that iiNet was a lot bigger than TPG.

    I was also under the impression that iiNet was the second largest DSL provider in Australia.

    If either of these are true how can TPG be in a position for a take over?

    problem with tpg is that there coverage is very lame, i want tpg unlimeted but no i cant cause im not in the right area :/

    Cant happen, They dont have enough clients, therefor not enough money... Not even up to par with Internode, why would they even consider it.

      Its not just DSL customers though. TPG own PIPE so there is a lot of bussiness/fibre/datacentre customers that your not accounting for here too. That being said I don't know if these make up the difference in income.

    Having recently become fed up with TPG and its constant drop outs, i switched to telstra cable. I could not be happier. the speeds, the stability of the connection, the low latency...

    do yourself a favour, and jump ship to telstra cable... i never thought i would type those words, but there you go.

      Not everyone has access to cable.

      And totally different technologies. Apples and Oranges. If you jumped over to Bigpond ADSL, chances are you would have been having the exact same problems.

    I am on TPG ADSL2+ and its great. No problems at all.

      +1. I actually went from iinet to TPG, and it has been great. no drop outs and the same speeds as I was getting from iinet.

    well since i work for telstra i can say that I didn't see anything in the newsletter/intranet that said TPG was going to buy iiNet.

    There's a solution. Convince all friends and family that are with TPG to change to ii ^.^

    I have been with Chariot which moved to) TPG for 15 years. I've moved up to ADSL2 off net. Never have dropouts, fantastic speed and reasonable prices. I can think of no reason I would ever move.

    Heh I wish I was that lucky drop outs, slow downs tech support treats you like your stupid by repeating the same thing over and over and over again. I hung in there until my contract was over.

    I moved to iinet and all the issues totally gone all I had to do was change my log in details and I was away no more drop outs or slow downs and a useful tech support that don't treat you as a fool.

    TPG never again!

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