The merger of communications company Soul and ISP TPG becomes effective as of today, following approval by SP Telemedia (owner of Soul) shareholders at a general meeting held in Sydney yesterday, creating a diverse and potentially large media and internet conglomerate and perhaps even a future Telstra rival.
The combined business claims to have one of Australia's largest DSLAM networks and a 700,000-strong customer base as well as owning a very diverse portfolio of digital media offerings including ownership of the NBN regional television network, Digiplus- a mobile and fixed line phone carrier and SPT Telecommunications (SPT JV), a joint venture between Soul and WIN TV.
In many ways, this is a very complimentary move by the two companies as TPG also dabbles in broadcast TV with its IPTV offering and Soul, through its Digiplus business has built a customer base as a low-cost, general-purpose ISP.
According to reports, plans to integrate the two businesses and their networks are already well advanced, with both companies saying this will create opportunities to increase network traffic, bundle and cross-sell products, reduce future capital and operational costs, and improve cash flow.
However on the subject of whether there will be any job losses at the new company or changes in customer services levels, there was no immediate word from any of the company spokespeople.
In a press statement, David Teoh, who will become executive chairman of SP Telemedia, said: 'The merged business is in an excellent position to continue the strong growth achieved to date by TPG. Through combining SP Telemedia's extensive IP voice, video and data network and mobile and business product capability with TPG's 257 DSLAM network and broadband customer base, we will have significant opportunities to increase competitiveness and expand market share.'
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