iiNet absorbs regional costs

iiNet Limited has adopted a loss-making policy in regional WA so it can improve its share of the ADSL market.

The company will charge country customers the same rates for ADSL access as it charges in the Perth metropolitan area. But Telstra’s wholesale rates for ADSL services are higher in non-metropolitan areas than retail rates in Perth, as it charges an additional regional access fee.

iiNet says it will absorb the fee to ensure it attracts customers by offering regional customers the same level of service at the same price as city dwellers.

Last week iiNet became Australia’s first broadband service provider to buy Telstra Wholesale’s DSL Layer 2 product, which iiNet will roll out from May this year.