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Vodafone New Zealand (Vodafone), a mobile operator and unit of the Vodafone Group based in the UK, has confirmed it has agreed to purchase ihug, a local ISP, from ISP iiNet for NZD41m.
The operator Vodafone claimed ihug should help it to develop more compelling propositions for its customers.
Wood is no stranger to the restaurant trade, having owned the European Restaurant on Queen Street and student bar The Pelican on Elliot Street prior to setting up ihug.
Wood founded ihug in 1994 with his brother Nick and it became New Zealand's third largest ISP before being sold to in 2003 for $82 million.
Companies mentioned in this report include - iHug, 2degrees, Telecom, Chorus, Vocus Communications, TelstraClear, Orcon, Compass, M2, TeamTalk, CallPlus, Vodafone, First Mobile, BellSouth NZ, MySky, Kordia, Axia.
Meanwhile Rushworth says iHug is keeping a watch on "alternative technologies" but few wireless options are commercially competitive to wired ADSL2 Plus.
In March 2007 Vodafone and ihug implemented a bundling strategy which allows customers to sign up for any of ihug's products in Vodafone retail stores, and in late 2007, Vodafone introduced a triple-play fixed voice, mobile and Internet service to the market.
TelstraClear is Telecom's major competitor in fixed-line access, although Vodafone has entered into a partnership with ihug, which provides business and residential dial-up and ADSL broadband Internet bundled with direct-dial toll calling, as well as web hosting and domain-name registration services.
But dial up services incur higher line charges," says Taryn Hamilton, manager business division for ISP (Internet Service Provider) ihug.
I hadn't even heard of the Internet then but we duly signed up with Ihug and with a 16Kbps modem were in the computer communications business.
We became shareholders in some of our competitors and shared in their success, as we did with Ihug in New Zealand, and with many we simply developed a strong relationship.
Vodafone's merger with ihug in late 2006 opens up some exiting opportunities in the area of fixed-to-mobile convergence.
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