Ihug's Sydney venture nears launch

Customers of the Internet Group will be able to access their accounts in Sydney from February 1, when Ihug's new Sydney operation launches. Nick Wood, Ihug's managing director, moved to Sydney full-time early in the new year and is now running an office with three staff.

Customers of the Internet Group will be able to access their accounts in Sydney from February 1, when Ihug's new Sydney operation launches.

Nick Wood, Ihug's managing director, moved to Sydney full-time early in the new year and is now running an office with three staff. The company is hoping its business model, based-around flat-rate Internet access and word-of-mouth promotion, will take on in Australia it has in this country. Since its merger with South Island provider ES Net, Ihug has been the second largest ISP in New Zealand.

"It'll be pretty much the same kind of operation as we run here," says fellow director John Wood. "We will have to do a fair amount of advertising to start with, just to get the customer base to the level where word of mouth becames the main factor.

"We noticed that here, when we looked at registration forms, which asked people how they found out about us, that at a certain point, most of them came from word of mouth."

John Wood says he and Tim Wood (all three are brothers) will be dividing up Nick's job, with Tim taking responsibility for technical issues.

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