Internode boss: 2006 the year of triple play

Stan Beer
Monday, 16 January 2006 05:58

IT Industry - Strategy

The managing director of boutique broadband player Internode, Simon Hackett, believes that 2006 will be the year when "Triple Play" service provision will come into its own in Australia.

"Triple Play providers like Internode will let customers use their broadband links to order videos, make phone calls and use the Internet," Hackett says.

"During 2006, people will start to order video-on-demand via their broadband connection.

"The increasingly correct assumption that broadband is a ubiquitous service will see new businesses appear and put increasing pressure on traditional companies such as Telstra that are trying to defend their customer base."

In March last year, Internode launched Australia's first ADSL2+ commercial broadband service.

The Adelaide-based company is currently spending millions of dollars to expand its national broadband network so it can deliver video-on-demand services throughout the country.

Hackett said he was positive about business expectations for 2006. "We expect continued growth during the coming year," he said. "We've recorded an average of 138 per cent growth during the past three years as people moved from dialup Internet to broadband services. In 2006, we will see growth driven by people buying new services from us, like phone services and video-on-demand, using their existing broadband link."

Hackett said the biggest opportunity and the greatest challenge for 2006 was the outcome of the battle between Telstra and the Government over competition regulation.  "From its strategic briefing in November, Telstra has made it clear that it wants to create a new generation broadband network to street cabinets that will require them to physically disconnect two thirds of customer phone lines from existing exchanges," he said.

"This will have the effect of cutting off wholesale access for alternative broadband providers to two thirds of their current and future city market, permanently. We want the Government to maintain the Trade Practices Act as it currently stands, and the ACCC to be fearless in enforcing it. This has the effect of preventing Telstra from using its monopoly position to lock out competitors from national telecommunications infrastructure that it controls."