Western Australian internet service provider iiNet today announced the appointment of PowerTel managing director Paul Broad as a non-executive director of iiNet, with immediate effect.
Western Australian internet service provider iiNet today announced the appointment of PowerTel managing director Paul Broad as a non-executive director of iiNet, with immediate effect.
Mr Broad's appointment to the iiNet board follows the placement of 12.6 million iiNet shares to PowerTel, the Sydney-based telco that formed a strategic alliance with iiNet last month.
The shares have now been issued, taking the total issued capital of iiNet to 121.8 million shares with, PowerTel holding 10.3 per cent of the Company.
iiNet executive chairman Peter Harley welcomed the appointment and said that Mr Broad had been part of the telecommunications industry for nearly a decade, and brought extensive change management experience in large companies.
Mr Broad has previously served as managing director of Energy Australia and chief executive of the Sydney Water Corporation and the Hunter Water Corporation.
He was a founding director of PowerTel in 1999, using energy infrastructure to give PowerTel its competitive edge.
The strategic alliance between the two telecommunications players gives the companies access to each others' infrastructure, and gives PowerTel exclusive ability to deliver wholesale access to iiNet's ADSL2+ network.
Senior management from the two companies are expected to complete a joint network plan by August this year.
Meanwhile, rival Perth telecommunications group Amcom Telecommunications continues to increase its stake in iiNet, through on-market accumulation of the stock.
Amcom has spent around $2.1 million over the past two days acquiring a further 2.5 million iiNet shares.
This comes after its shares surged 28 per cent when it acquired 19.97 per cent of iiNet last week.
At the time Amcom managing director Eddy Lee played down talk of a takeover bid for iiNet when contacted by WA Business News.
Amcom had sought to do a deal with iiNet during the ISP's recent month-long trading halt, but failed to do so and has since been active in pursuing the stock on-market.
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PAUL BROAD APPOINTED TO IINET BOARD
PowerTel's Managing Director, Mr Paul Broad, was today appointed a Non-
Executive Director of iiNet, effective immediately.
Mr Broad's appointment to the iiNet Board follows the placement of 12.6
million iiNet shares to PowerTel. The shares have now been issued, taking
the total issued capital of iiNet to 121.8 million shares with, PowerTel holding
10.3% of the Company.
Mr Peter Harley, Executive Chairman of iiNet, welcomed Mr Broad to the
Board.
"Paul has been part of the telecommunications industry for nearly a decade,
and he brings extensive change management experience in large
companies," said Mr Harley.
Mr Broad has previously served as Managing Director of Energy Australia and
Chief Executive of the Sydney Water Corporation and the Hunter Water
Corporation. He was a founding director of PowerTel in 1999, using energy
infrastructure to give PowerTel its competitive edge.
PowerTel today owns a national IP/ Voice network, which is supported
through 120 DSL enabled exchanges and extensive metropolitan fibre,
providing high quality, flexible services to its wholesale and corporate
customers.
iiNet is the third largest Internet Service Provider in Australia and New
Zealand, having focused on the retail market since 1993. iiNet now serves
over 600,000 active subscribers and generates revenue of over $250 million.
The Company has spent approximately $30 million in the past two years
building Australia's largest ADSL2+ broadband network. This network is
expected to be able to deliver high speed broadband to more than 90% of
metropolitan customers in the next year.
iiNet and PowerTel announced a strategic alliance last week, giving the two
companies access to each others' infrastructure, and giving PowerTel the
exclusive ability to deliver wholesale access to iiNet's ADSL2+ network.
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"iiNet and PowerTel are going to be working very closely together in the
future," said Mr Broad. "We will minimise duplication and improve the
utilisation of existing equipment. We don't want to have two of Australia's top
telecommunications companies racing each other into exchanges to roll out
the same equipment."
Senior management from the two companies are expected to complete a joint
network plan by August this year.
