Feeds

Vocus buys ailing Australian fibre network

Digital River acquisition won’t cause wholesale / retail conflict

Secure remote control for conventional and virtual desktops

Troubled dark fibre provider Digital River has been acquired by Vocus Communications, giving the Australian wholesaler nearly 60 Km of operational fibre in Sydney and Melbourne at the bargain-basement price of A$3.95 million.

Digital River was founded in 2001 to build a network serving Melbourne CBD premises, and later expanded to Sydney. The company has struggled to succeed, and last year suffered a rash of management changes reaching all the way to the CEO.

Announcing the acquisition, Vocus CEO James Spenceley said his company would be able to add metro fibre services to its existing data centre and IP transit products. The acquisition, he said, fits into Vocus’ strategy to “become the leading infrastructure provider to the teclo, cloud computing and retail ISP markets”.

In absorbing the acquisition, Vocus will have to avoid the perception of creating a wholesale / retail conflict. Such concerns have been raised in previous acquisitions in the Australian market. For example, the purchase in 2009 of dark fibre wholesaler Pipe Networks by retail ISP TPG was criticized by some Pipe customers fearful that they would be competing with their dark fibre supplier.

Spenceley told El Reg he believes he can avoid such problems. “A large percentage of Digital River’s fibre and Ethernet customers are wholesale clients, so there isn’t much clash,” he said in an e-mail.

While Digital River offered other retail and business services, Spenceley said Vocus expects to migrate these to its retail customers, so that in future, his company will be able to focus on offering wholesale services only. ®

Top 5 reasons to deploy VMware with Tegile

More from The Register

next story
Mighty Blighty broadbanders beg: Let us lay cable in BT's, er, ducts
Complain to Ofcom that telco has 'effective monopoly'
Download alert: Nearly ALL top 100 Android, iOS paid apps hacked
Attack of the Clones? Yeah, but much, much scarier – report
Broadband sellers in the UK are UP TO no good, says Which?
Speedy network claims only apply to 10% of customers
Yahoo! blames! MONSTER! email! OUTAGE! on! CUT! CABLE! bungle!
Weekend woe for BT as telco struggles to restore service
Fujitsu CTO: We'll be 3D-printing tech execs in 15 years
Fleshy techie disses network neutrality, helmet-less motorcyclists
Facebook, working on Facebook at Work, works on Facebook. At Work
You don't want your cat or drunk pics at the office
Soz, web devs: Google snatches its Wallet off the table
Killing off web service in 3 months... but app-happy bonkers are fine
prev story

Whitepapers

Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Designing and building an open ITOA architecture
Learn about a new IT data taxonomy defined by the four data sources of IT visibility: wire, machine, agent, and synthetic data sets.
How to determine if cloud backup is right for your servers
Two key factors, technical feasibility and TCO economics, that backup and IT operations managers should consider when assessing cloud backup.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.