ISP trio sets out to break Telecom's bandwidth cabal

A new force has emerged in the national ISP business with the provisional agreement yesterday by Iprolink, KCCS and Iconz to pool resources.

A new force has emerged in the national ISP business with the provisional agreement yesterday by Iprolink, KCCS and Iconz to pool resources.

The three large Auckland companies -- which between them supply dozens of downstream ISPs -- will establish their own Internet exchange in Auckland, and collectively buy international Internet bandwidth, possibly from MCI or Sprint, which have both signalled an interest in doing business.

The venture is seen as a rejection of Internet services from existing telcos -- and Telecom and Netway Communications in particular. KCCS's David Dix says that for the first time at the meeting, representatives of the three ISPs revealed to each other exactly what rates they have been paying Netway "and I won't tell you the words that came to mind."

The Internet co-operative idea is a revisiting of a concept raised by some industry players last year, when it became clear that Netway would take over management of NZGate. The new exchange will probably also include a "very grunty" common news server and router.

The venture could be a lifeline for some smaller ISPs and institutions, which have been paying as much as $5000 a month to Netway for a 64kbit/s leased line to NZIX at Waikato.

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