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iiNet to buy TransACT?

By johnboy - 16 November 2011 28

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The Register is carrying speculation that TransACT is about to be bought by the generally excellent iiNet ISP:

Speculation that TransACT is for sale has popped up on a fairly regular basis as far back as 2004, and in 2009, but this time, the Australian Financial Review is reporting “final negotiations” from behind its paywall.

TransACT was an early entrant into infrastructure-based competition in Australia, building a fibre / VDSL network in Australia’s capital that was established in 2000. As well as its network operations, the carrier operates data centres in the ACT, and in 2008 acquired Victorian regional HFC network operator Neighborhood Cable.

Acquisition of TransACT would give iiNet more than just a residential network: over time, the company has also made its way into both state and federal government agencies. The Canberra company also claims 5,000 SME customers, a market that iiNet is increasingly targeting with new services.

UPDATE: Smart Company is reporting a trading halt on iiNet amidst speculation they’re about to announce the move:

Telco iiNet has been placed in a trading halt ahead of what is reported to be a move to acquire Canberra ISP TransACT.

The move comes after the Australian Financial Review this morning reported the company has been speaking with ISP TransACT and that negotiations were in a late stage.

Such a deal would see iiNet take control over some infrastructure elements including networks in Canberra and Victoria.

The move comes after iiNet has already bought out AAPT’s residential customer base earlier this year.

iiNet has requested a trading halt until Friday, or until it makes an announcement.

What’s Your opinion?


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28 Responses to
iiNet to buy TransACT?
1
mcs 11:59 am
16 Nov 11
#

As someone that has transact cable into my property, but not using it at the moment as it was ridiculously expensive compared to Iinet’s offering for Naked DSL, this sounds like a good deal to me , as long as it leads to lower pricing on the current Transact network.

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2
Grrrr 12:06 pm
16 Nov 11
#

Seems likely that iiNet is buying someone, because they just entered a trading halt:
http://www.asx.com.au/asx/research/companyInfo.do?by=asxCode&asxCode=iin

TransACT does a lot of business that iiNet doesn’t focus on, so if iiNet are buying them, it’ll be interesting to see what happens.

Personally, I’m hoping for a speedup of TransACT’s VDSL2 ugprade of their Phase1 network. At this stage, it’s going to take them about a year to complete. It’s the only way to get faster than ADSL2+ speeds for most people outside of the FTTH areas – 60/15mbps ahoy! (Telstra LTE 4G real world speeds will not compete, sorry.)

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3
aidan 12:19 pm
16 Nov 11
#

Interesting. I too had TransACT cable (phone) but didn’t bother with the broadband as it was ridiculously expensive. At the beginning of the year a rep came round and signed me up as they had a $5 broadband offer (plus $20 ISP fees).

I just assumed they were trying to get as many broadband customers on the books as possible for a possible NBN deal, but perhaps it was trying to make it look better for a takeover?

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4
Thoroughly Smashed 12:26 pm
16 Nov 11
#

I like the sound of that.

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5
deye 12:27 pm
16 Nov 11
#

could be interesting if they do.

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6
Rollersk8r 12:56 pm
16 Nov 11
#

As an iinet customer I’m very interested to see what they might offer!

Although, the TransACT cable up behind my house was lying slack on the ground for about a week. I rang ACTEW and got an automated message they were attending to matters already reported in my suburb. Someone obviously came – as the cable has now been raised to waist height… right along the track where people walk their dogs etc.

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7
Jivrashia 1:14 pm
16 Nov 11
#

I hope with this acquisition that things can only get better…

Yeah, my past experience with TransACT is something to sing about (tongue firmly in cheek).

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8
thatsnotme 1:33 pm
16 Nov 11
#

I assume if iiNet buy TransACT, that’d be the end of the TransACT bundling with ACTEW services as well?

Will certainly be interesting to see whether iiNet are willing to actually offer services at anything like modern speeds and prices. I just tried to check what speeds are actually available at my place via TransACT (I have VDSL cable available), and they don’t even deign to mention speeds on their website any more?? Even in the FAQ, the question ‘How fast is a TransACT VDSL OR VDSL2 broadband connection?’ leads to an entry that no longer exists…I assume they forgot to remove the question from the FAQ at the same time as they removed the answer. It’s rubbish like that which has always stopped me considering connecting to TransACT (not to mention the cost, and the number of stories I’ve heard of people counting down the days until they were out of their contract and could move to someone else!)

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9
Thoroughly Smashed 1:55 pm
16 Nov 11
#

thatsnotme said :

I assume if iiNet buy TransACT, that’d be the end of the TransACT bundling with ACTEW services as well?

Will certainly be interesting to see whether iiNet are willing to actually offer services at anything like modern speeds and prices. I just tried to check what speeds are actually available at my place via TransACT (I have VDSL cable available), and they don’t even deign to mention speeds on their website any more?? Even in the FAQ, the question ‘How fast is a TransACT VDSL OR VDSL2 broadband connection?’ leads to an entry that no longer exists…I assume they forgot to remove the question from the FAQ at the same time as they removed the answer. It’s rubbish like that which has always stopped me considering connecting to TransACT (not to mention the cost, and the number of stories I’ve heard of people counting down the days until they were out of their contract and could move to someone else!)

Their website has become almost entirely useless. In addition to that FAQ answer that neither of us could find, there are two data plans with the same amount of data but different prices. What’s the difference? Nobody knows!

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10
dvaey 2:13 pm
16 Nov 11
#

thatsnotme said :

It’s rubbish like that which has always stopped me considering connecting to TransACT (not to mention the cost, and the number of stories I’ve heard of people counting down the days until they were out of their contract and could move to someone else!)

Ill put my name down as one of those people. Ive been a TransACT customer since 2001 when they offered long-distance pre-selection to Telstra customers, then took up their cable offer once it became available. However, each time we made a small change to our setup (adding movie channels to the TV service, or changing network speed) they forced us onto a new contract. Our last contract has just run out, and we’re in the process of switching all our services from TransACT to other providers.

Our biggest problem, was that due to how our account was setup, we were still paying 2001 prices for poor services, so for 1mbit internet and basic pay tv service we were contracted to over $100 per month. (plus the ISP charges) Their service was great in the early 2000’s, but they never kept up with the market or with market pricing.

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11
the_snapper 2:55 pm
16 Nov 11
#

Talkative Ivan Slavich gums up on TransACT sale here: http://wp.me/p1sjY1-43U

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12
LadyBhaal 3:00 pm
16 Nov 11
#

I’m on TransACT’s VSDL2, and I love my 30/10 :) I don’t think I’ll get much better till the NBN gets here.

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13
mtrax 3:50 pm
16 Nov 11
#

what parts of TransACT will they be buying? ALL of it? or just the ISP part?

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14
thatsnotme 4:18 pm
16 Nov 11
#

mtrax said :

what parts of TransACT will they be buying? ALL of it? or just the ISP part?

Well by rights, TransACT isn’t an ISP – Grapevine is the ISP that does all the bundling with TransACT, but there’s been no mention of it being sold. But what iiNet are looking to buy is the TransACT network – ie, the infrastructure side.

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15
dungfungus 4:50 pm
16 Nov 11
#

This maybe is great news for ratepayers because we might get back the $80 million odd that Actew and their associate companies have written off investing in TransACT. Can the ACT Government then please legislate to stop them rushing off to blow our money into another crazy scheme?
S***! – I just remembered someone with strong Actew connections is looking for $30 million for an ampitheatre in the bush. Oh well, I guess we will have to settle for $50 million.

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