IiNet, Internode gear up for applications in 2011

iiNet and Internode have changing business strategies for 2011, with applications and improved customer service becoming they focal points in the coming year.

"The last few years have mainly been about getting everyone connected to high-speed broadband," he said. "The straightway few years are actually about how you use it  - what the applications are that you can take advantage of but that you're connected at very high speeds to the internet."

The launch of BoB

The launch of BoB and IPTV service fetchTV in recent years have indicated iiNet's move away from being a pure service provider now, until but, growing its customer base has been a high priority. In an interview with Computerworld Australia toward the end of last year, Malone identified 2010 as a "switcher's market" that forced iiNet to develop retention strategies, something it has done through an aggressive advertising campaign as then as becoming the "acquirer of choice" for smaller ISPs. Internode chief executive, Patrick Tapper, indicated similar changes to the Adelaide-based service provider's goals for straightway year, with IPTV and anticipated NBN applications forming a base for furthermore changes. "We saw the end of the rapid growth that occurred since 2005," he said in a statement. "During the market is in a commodity cycle for the moment, where every service provider is fighting for market share, Internode believes that increased product diversification and a continued focus on excellent customer service will maintain our growth in the coming year."

However, not all believe that content and application delivery is a viable business model for established ISPs. AAPT chief executive, Paul Broad, said on the launch of the ISP's unlimited plans that connectivity remained a key priority for smaller providers. The retail division was bought by iiNet in July, establishing the Perth-based company as Australia's second largest DSL provider.

Proprietary FetchTV or T-Box system

"Trying to build up a proprietary FetchTV or T-Box system; these things are going out the window because we're unlocking and hacking devices. There is no way that you can build sustainable, long-term businesses based on proprietary systems anymore."

Service provider's increasing interest in Cloud computing and data hosting has bolstered investment in the data centre space, putting the telco sector on the same battleground as more traditional IT stalwarts IBM, EDS and HP. But, Budde said that during telcos could successfully compete in the infrastructure and middleware or connectivity layers, the applications themselves would require a third party.

What Michael Malone

"What Michael Malone and others I think are alluding to is that what they want to to do is build up a customer base big enough to be of interest to retailers who want to reach the clients," he said. "If you want to harness the combined ICT components - Cloud computing and the NBN - at that time you evidently have to be attractive to companies like Harvey Norman, the banks, healthcare organisations who want to deliver services to the end-users.

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