iiNet, Internode gear up for apps in 2011

17.12.2010
iiNet and Internode have changing business strategies for 2011, with applications and improved customer service becoming they focal points in the coming year.

In a to iiNet subscribers, managing director, Michael Malone, said the provider was moving away from growing its customer base - now at approximately 650,000 subscribers - and instead looking to deploy applications over coming years.

"The last few years have mainly been about getting everyone connected to high-speed broadband," he said. "The next few years are really about how you use it - what the applications are that you can take advantage of now that you're connected at very high speeds to the internet."

In the video, Malone and iiNet managers hinted at possible new applications in 2011, including remote desktop support for contact centre staff and successors to its popular BoB modem router with touch screen panels. The new applications and technologies are likely to be derived from the provider's as a means of tailoring applications to suit existing services.

The launch of BoB and in recent years have indicated iiNet's move away from being a pure service provider but, until now, growing its customer base has been a high priority. In , Malone identified 2010 as a "switcher's market" that forced iiNet to develop retention strategies, something it has done through an aggressive advertising campaign as well as becoming the . Internode chief executive, Patrick Tapper, indicated similar changes to the Adelaide-based service provider's goals for next year, with IPTV and anticipated NBN applications forming a base for further changes. "We saw the end of the rapid growth that occurred since 2005," he said in a statement. "While the market is in a commodity cycle at the moment, where every service provider is fighting for market share, Internode believes that increased product diversification and a continued focus on excellent customer service will maintain our growth in the coming year."

However, not all believe that content and application delivery is a viable business model for established ISPs. AAPT chief executive, Paul Broad, said on the launch of the ISP's unlimited plans that . The retail division was bought by iiNet in July, establishing the Perth-based company as Australia's second largest DSL provider.