Telstra buys internet provider

By Richard Braddell

WELLINGTON - Telstra New Zealand has boosted its presence in the local telecommunications market by buying Wellington-based internet service provider NetLink, from Victoria University.

Touted as the largest non-telco-linked internet service provider, NetLink has about 1000 CBD-centred customers ranging from Government departments to small and medium-sized enterprises, mostly in Wellington.

Telstra's managing director product development, Chris Wilkinson, said the NetLink acquisition fitted Telstra's aim to be the number one online provider to business, an ambition it now shares with a number of telecommunications companies.

Claiming that Telstra and NetLink were complementary in almost every aspect of their businesses, Mr Wilkinson said NetLink's innovative internet technologies could be used in Australia while NetLink would benefit from Telstra's sales expertise.

"There's certainly opportunities in moving technology outside New Zealand.

"NetLink has been working on some very interesting technology that we don't have in Australia."

With around 40 staff, NetLink's future within Telstra has yet to be decided. It is likely to continue trading under the NetLink brand over the next six months, but its chief executive, David Plummer, said it might be maintained as a stand-alone operation or rolled into the parent company.

The price paid by Telstra was not disclosed.