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Front End: The Daily Dose
June 25, 1999

Tables Turn Among ISPs Down Under

Big money is making its presence known in Australia's market for Internet services, where small players had been flourishing.

OzEmail and BigPond, with ties to MCI WorldCom and Australian telecom carrier Telstra, respectively, are now the dominant ISPs Down Under, according to one analyst.

OzEmail claims 40,000 businesses among its 300,000 customers, while BigPond claims more than 200,000 customers and revenue of $2 billion. Those numbers dwarf those of iinet, a successful smaller ISP, which claims about 20,000 customers.

David Parsons, an analyst with E-Com, says many customers new to the Internet market simply choose the most publicized providers--a tendency that benefits the larger players who have bigger ad and marketing budgets.

Parsons advises small ISPs to establish a target market and seek market share over profitability.
--Ashlee Vance




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