Executive Summary
A business establishment usually have challenges that come together with its operations. Most of the challenges are financially related and can be solved by having good market strategies. Other problems that may be faced by a company include competition and customer betrayal depending on the type of business enterprise.
This report is to cover iinet service providers which is an Australian based company which offers internet services. The report is going to tackle areas on how the Australian company has been operating, the hurdles that the company has undergone and the measures that have been taken by the company’s management to ensure that it doesn’t experience some of the problems it experienced before.
The iinet company provides internet services and is one of the leading providers of the services in Australia. Some of the revolution that has been witnessed in the company include: acquisition of other firms and expansion of its services. The iinet company has been on the fore front to improve their services through involvement of other subsidiary firms which perform similar operations. This action has seen it improve its services in the service industry.
Recommendation
After being in operation for some period of time, there have been a series of revolutions in the company. There has been moments when the company suffered especially when a court suit was filed against the company and when their shares were suspended from the share trade market. For such a mishap never to happen again, I would recommend that the company carries out a thorough market research before venturing into any kind of investing. The company also need to educate their customers on how to use their services without breaking the law in any way or by any means.
Introduction
iinet Limited is an Australian internet service provider which focuses primarily on ADSL based internet access using their own ADSL2+ infrastructure. It also provides dial up and voice services. Over the last years, iinet has acquired many smaller ISPs in its growth. This is however a substantial customer base in Western Australia. Some of the companies which have been acquired by this company are ihug and ozmail.
iinet was founded in 1993 and it began as a small company. The company has been on the rise ever since its inception. Several changes have been witnessed an it became the first ISP to offer PPP access in Australia.
The company has grown through several ways and the most important way is through the acquisition of several companies. Some of the new registered companies that was acquired by iinet was a telecommunications provider iiTel which sought to improve Internet access prices through making wholesale telephone access to be much cheaper.
Methodology
iinet achievements
One of the greatest achievement of iinet was the DSLAM deployment when iinet introduced their own DSLM infrastructure known as iiSLAMs or iiDSLAMs. This made iinet to be the first Australian Company to offer speeds above 1.5 Mbit/s.
Problems faced by iinet
Competition
In 2005, Telsra which was iinet’s main competitor made changes in their pricing. This reduced iinets sales had a drastic measure was to be taken in order to ensure that they remained in operation. iinet had also to change their pricing in order to maintain their customers. The iinet decided to reduce their speed but doubling the data allowance instead. They reduced the speed of a 1.5 Mbit port to 512 kbps.
Suspension and resumption of share trading
The iinet share value slid from A$3.40 in September 2005 to A$ 1.69 in April 2006 which made iinet request for a trading halt. It was forced to suspend its shares. The company stayed out of the stock market for a period longer than that which was expected.
AFACAT Lawsuit
Australian Federation Against Copyright Theft filed a lawsuit against the iinet in November 2008 with a claim that there was an infringement of the copyright laws. This was attributed to the fact that iinet failed to prevent its subscribers from downloading pirated materials using BitTorrent peer to peer protocol. The law suit was also filed by 34 film companies. iinet however, later reacted by saying that some of the accusations were not worth as it would be very difficult for them to disconnect a customer’s line due to some unsupported rumors.
Hypothesis
Positive hypothesis
iinet is the best internet providers in Australia
iinet has the largest shares in the telecommunications industry
Negative / null hypothesis
iinet do not have enough resources to run their operations
Work Cited List
iinet annual report 2010
The stock market report of Australia for the year 2010
iiNet Limited: “iiNet and PowerTel form Strategic alliance.” 2006
