Interesting, it would be a good way for Vodafone to enter the Broadband Market. Still I wonder what the consequences of such a move would be, if Vodafone where to buy up more ISP's than just Ihug? Perhaps we will have a similar situation as we currently have with Mobile in this country, although Telstra say they are on the way. Will it be the big 3?

Just received this press release from Orcon:

Orcon looks to purchase ihug

Orcon Internet is excited about the potential to create a Kiwi-owned, number two player in the New Zealand telecommunications market through the acquisition of Australian-owned ihug.

Today’s announcement from iinet that the ihug business is up for sale, follows months of talks between Orcon and iinet management about the future of their New Zealand operation.
 
“We have been actively pursuing a purchase of ihug for some time now.  I’m pleased to see that the iinet board has taken on some of our proposals, and offered to place the business on the market.” Says Orcon’s General  Manager of Operations and Regulatory Scott Bartlett.
 
“ihug was a real New Zealand business success story before its ownership went offshore, this sale process gives us an opportunity to create a 100% Kiwi-owned telecommunications provider, with the scale and the resources to take on the foreign owned incumbents.”
 
Orcon has grown from a garage based one-man-operation, to a full service telecommunications company; and like ihug has been active in the pursuit of better broadband for all New Zealanders.  Combining these operations would give Orcon the scale to compete more effectively in the broadband market, as well as allow Orcon to leverage the regulatory changes recently announced by the Government. 
 
“Scale in customer numbers and resource is an essential part of making LLU work, so by combining the number three and four players in the market we can deliver faster on the promises LLU holds for better broadband in New Zealand.” Concluded Bartlett.
 
Orcon has sustained a high level of growth over the past 3 years to become NZ's 4th largest ISP. Previously known as a provider of wholesale internet and business connections, Orcon has become a household name in New Zealand.


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freitasm: What are you talking about? I thought LLU was the panacea these people were waiting for. Now you tell us that it actually creates problems by forcing companies to sell services on a loss?

Wow...

And now Vodafone:

VODAFONE WELCOMES TELSTRACLEAR INTO MOBILE MARKET

Vodafone NZ today welcomed TelstraClear’s plans to enter the mobile market with the announcement of its Unplugged service, to be launched in Tauranga next year.

CEO Russell Stanners says Vodafone is encouraged to see a third player investing in mobile infrastructure.  

“TelstraClear’s $50 million investment, coupled with Vodafone’s ongoing commitment to invest in its 3G network to provide local calling and broadband services, is a positive step for New Zealand’s mobile market.

“This is an exciting time for the industry. TelstraClear’s new service highlights where mobile is heading, allowing customers to use their phone as a mobile, home phone and for broadband,” Stanners says.

He says the fact TelstraClear is using W-CDMA 3G (Wideband CDMA) for its service is an excellent endorsement of Vodafone’s technology.

“W-CDMA 3G allows consumers access to a variety of services from their mobile. This includes video calling,  and mobile TV and downloading music. It also offers 3G datacards, giving laptop users immediate access to internet, email and office applications and 3G mobile broadband.”

Stanners says TelstraClear’s service is a clear indication the market is open to new entrants and further regulation of the industry to increase competition is not needed.

TelstraClear is a long-term partner of Vodafone as a reseller of its mobile products.

ENDS

psychrn: A brief observation.
It was not that very long ago that Iinet had temporarily ceased trading on the Aussie Stock exchange.
What does this tell you-if anything