iiNet now has more than one million customers.
New challenges
But there are few new people left to sign up to the internet. iiNet’s growth has to come from other markets, including corporate Australia.
That’s what the TransACT acquisition was about.
“The acquisition of TransACT has significantly expanded our presence in the business segment,” Malone says. “Five years ago we identified this segment as one we would focus on expanding. Since then we have successfully expanded our portfolio, and now provide services across all key market sectors from home and small office, through to small businesses and now into corporate and government businesses.”
Business customers now bring iiNet revenues of more than $170 million a year – just over 20% of total revenues.
But business customers are tough market to crack. The nation’s leading internet service provider, Telstra, is dominant. Under CEO David Thodey, Telstra has emphasised customer service, an area that had been a competitive advantage for iiNet.
iiNet is also focusing on cross-selling its range of products. It began offering mobile plans today. “It’s a very choked environment right now in terms of choice [for mobile customers],” Malone says. “We’re going to take the opportunity to give more choice to customers.”
And, of course, future growth could come from the NBN.
iiNet has 2000 customers signed up with the NBN – making it the early market leader.
“We’re basically following the NBN truck around the country,” Malone says.
Myriam Robin is a reporter for SmartCompany and its sister site LeadingCompany. She has degrees in economics, international studies and journalism. She likes writing about businesses taking risks and doing new things.
