BigPond pushes into networking ads

BigPond seems to be set on trying to gain customers in a market where they are losing them, with a new push involving a networking your home angle.

BigPond traditionally don’t support networking at all, and limit support of the customer internet connection to the first and only internet connected machine, refusing to get involved in even basic ICS or Router based networking.

The motive to me would seem sparked by a noticed decline in market share, sliding under 50% marketshare, which speaks volumes about customer loyalty.

Telstra are also likely preparing for the negative effects that will result from OPEL, Optus and Virgin’s marketing strategies, and those I imagine they will feel hurt by.

Examples of that include the Wholesale loss of business.

Inevitably, a new wholesaler of ports is entering the market, and that to Telstra Wholesale spells problems for its near monopoly.

Essentially, all those ports that they have in exchanges will be wasting away, unused. Telstra would have made investment decisions in putting them in there, based on demand increasing, and wholesale competition remaining at low to NO levels.

That’s changing as Optus, Agile, Chime, OPEL and a few others are investing and wholesaling large amounts of ports from exchanges.

Telstra will obviously have to compete for market share on the wholesale and retail level, and the harm done to profit margins as a result will affect Telstra.

Telstra’s retail broadband share is at 45%. That means the other 55% are with competitors.

With any consolidation of the industry, you can imagine the issues for Telstra.

We already know that iiNet has been eyed off by a few passing companies as it is, so its not far fetched that there could be a bigger consolidation, and a LARGER threat to Telstra be formed.


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