Internode CEO Simon Hackett plans to use broadband to invade the home with rich new services in 2005. "Before the end of the year, Internode will offer its customers attractive bundles that include voice, video and data," he said.

"Broadband bridges the moat around homes and businesses that Telstra has guarded against invasion for the past decade. The coming year will see an increasing amount and variety of traffic crossing that moat, including innovative voice and video services."

"The biggest opportunity for Internode in 2005 involves bundling value-added services that use our own broadband infrastructure."

Founded in 1991, Internode is a privately held broadband provider with full national network coverage. The company has more than 100 employees, a figure it expects to grow by 25 per cent during the next year to service its booming broadband business.

Internode has already announced that it will offer Voice over Broadband packages during the first quarter in 2005.

Mr. Hackett said Australia was likely to follow the US lead with fixed price voice bundles to encourage customers to sign up for the service. "In the next 12 months, many companies will enter this market as they aim for the ultimate 'triple play' - voice, video and data," he said.

"The breakthrough for small businesses is access to integrated voice and data services, along with a massive drop in call prices, which have been available only to large companies to date. Voice over IP provides the catalyst for a big shift in the pricing model. It has already shifted in America where a challenger like Vonage has driven major incumbent carriers to offer their customers a fixed price for monthly phone calls."

Mr. Hackett said the outlook for broadband was very positive in 2005. "The only cloud on the horizon is the risk of the further pollution of the regulatory landscape consequent to the sale of Telstra," he said.

About Internode

Internode (www.internode.on.net) is a leading Australian broadband services and Internet services provider. Based in Adelaide, it is a premier provider of business-class Internet access and professional services to organisations throughout Australia. Internode founder Simon Hackett, also President of the SA Internet Association, is an Internet pioneer who was involved in AARNet, which brought the Internet to Australia's shores in the 1980s.