[AusNOG] M2 buy Primus

[Rod Veith]

The consolidation of the market is certainly continuing. I enjoy seeing
private business strategies coming out in public. 

Personally I was expecting iiNet to get Primus and was surprised by the M2
takeover. Will be interesting to see how M2 manage their multiple brands in
the market place. 

Vodafone has always seemed a little strange in being 'mobiles only' as the
main consumer market clearly favours 'bundled deals'. While niche marketing
is a good way to enter a new market (ie Australia), with Vodafone's
financial size I had expected a move to bundled services over 5 years ago.
Not sure what held them back.

Re: TPG and iiNet.  I'd have thought that the owners/management of TPG and
iiNet had different and incompatible philosophies and would not make a good
fit. Also, why tie TPG money up in iiNet instead of growing TPG? Interesting
move.  Unsure why TPG want a stake in iiNet unless TPG (he?) sees it as a
spoiling stake to try and limit the growth of iiNet. I'm unclear if TPG have
enough financial muscle to takeover iiNet and whether or not TPG could get
enough of the shares to make it worthwhile. With iiNet shares close to their
record price it seems unwise to make any move on them at the moment. 

Optus doesn't seem to like acquisitions and is potentially in danger of
losing its place in the market and Telstra seems hopeless at acquisitions.
Telstra is the big loser and just can't seem to pick any winners. People
managing Telstra/Telstra directories over the last 15 years really lost the
plot and missed all the major new ideas in hosted sites (eg real estate, job
vacancies, networking etc). Suspect some good business school examples here
of how short term management views and self-interest appear to be losing to
long-term owners/management.

These are my personal opinions and not reflective of any organisations I
have worked for, any I am presently working for or will work for in future. 

Rod

-----Original Message-----
From: ausnog-bounces at lists.ausnog.net
[mailto:ausnog-bounces at lists.ausnog.net] On Behalf Of Matthew Moyle-Croft
Sent: Monday, 16 April 2012 1:44 PM
To: Paul Brooks
Cc: ausnog at lists.ausnog.net
Subject: Re: [AusNOG] M2 buy Primus


On 16/04/2012, at 1:06 PM, Paul Brooks wrote:

> On 16/04/2012 1:29 PM, Matthew Moyle-Croft wrote:
>> 
>> 
>> Also interesting
>> today: 
>> http://www.abc.net.au/news/2012-04-16/vodafone-to-offer-fixed-line-se
>> rvices/3952846
>> 
>> Vodafone going to do fixed line in AU.  Suspect times will never be 
>> uninteresting in Australian telecommunications.
> 
> Been wondering when they would get around to doing this - since 
> Vodafone NZ bought ihug (from iiNet) in late 2006, and several other 
> countries globally where Voda does fixed-line as well as mobile for almost
a decade.

I suspect NBN as a level playing field makes this a good time to enter the
market.  Am kind of surprised they didn't acquire an existing customer base
to do this, but maybe longer term a "clean" environment was better?  Wasn't
sure if Voda themselves were going to be acquired in AU to pull this off.
Bundling of mobile and NBN is going to be the way forward.  Optus had better
make sure their mobile network is good if they're going to continue to be
really the only major wholesaler of mobile.

So, where's the betting pool on who's buying who next?  How's TPG's stealth
buying of iiNET stock going?  

MMC

> 
> Paul.
> 

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