Orcon say 'interested' in acquiring ihug

Orcon internet today said the company is "excited" about the potential to create a Kiwi-owned, number two player in the New Zealand telecommunications market through the acquisition of Australian-owned ihug.

Today's announcement to the Australian Stock Exchange (ASX) from iinet that the ihug business is up for sale, follows several discussions in which Orcon inquired about the future of their New Zealand
operation.

"We have been actively pursuing a purchase of ihug for some time now. I'm pleased to see that the iinet board has taken on some of our proposals, and offered to place the business on the market," said Orcon's general manager of operations, Scott Bartlett.

"ihug was a real New Zealand business success story before its ownership went offshore. This sale process gives us an opportunity to create a 100 per cent Kiwi-owned telecommunications provider, with the scale and the resources to take on the foreign owned incumbents," he added.

Orcon profess that they, like ihug, have been "active in the pursuit of better broadband for all New Zealanders".

"Combining these operations would give Orcon the scale to compete more effectively in the broadband market, as well as allow Orcon to leverage the regulatory changes recently announced by the Government", said Bartlett.

"Scale in customer numbers and resource is an essential part of making local loop unbundling (LLU) work, so by combining the number three and four players in the market we can deliver faster on the promises LLU holds for better broadband in New Zealand," concluded Bartlett.

Orcon is New Zealand's fourth largest ISP. Previously known as a provider of wholesale internet and business connections, Orcon now claims to be a household name in New Zealand.

- HERALD ONLINE STAFF