TPG has just announced that it is planning to buy iiNet for a whopping $1.4 billion. That will make the combined entity Australia’s second-largest ISP.
The deal is subject to approval by iiNet shareholders, and voting on that won’t happen until June. But if it does go ahead, the combined customer footprint will be 1.7 million. Telstra, currently Australia’s largest ISP, has 2.8 million fixed data customers.
[related title=”WHAT DOES IT MEAN?” tag=”rubbishfuture” items=”1″]For customers, the big question will be whether iiNet (and its subsidiary brands Internode, Westnet and Adam) will be able to maintain its reputation for excellent customer service. TPG is rather less well regarded in that area. The announcement suggests iiNet will be retained as a “premium” brand, while TPG will be the “value-based” (read: cheap) proposition.
If you’re a customer of either provider, we’d love to hear your thoughts on this in the comments.