Aardvark
IHUG and ES merge
Copyright © 1996 to Bruce Simpson

IHUG continues its roller-coaster expansion with the announcement that it is merging with Efficient Software, effectively creating a nation-wide ISP covering both north and south islands.

The combined user-base of the new entity is expected to exceed 10,000 making it a significant player in the NZ marketplace.

Existing ES subscribers are the big winners in this deal as their surfing costs will be slashed dramatically when ES brings its prices into line with those presently charged by IHUG.

Bart Kindt of ES says "Merging ES Net with IHUG makes the combined company a nation-wide provider, one of the largest in New Zealand with more dial-in lines and backbone capacity than any other in NZ, including Telecom's Xtra".

The claimed combined subscriber-base of 10,000 users is also likely to be closer to that of Xtra and Voyager than the mere numbers might indicate due to the effect of a minimum monthly commitment. Those ISPs who have no such commitment are able to draw an arbitrary definition of what constitutes an "active subscriber" by varying the amount of time considered "reasonable" between logins.

With increased competition and pressures on profit margins the NZ ISP industry can expect to see more consolidation over the coming months.


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