This is my take on it, as a customer of iiNet and someone who is considering a small investment I see allot of potential for this company.
Fundamentally because they provide an incredible service at good prices. I work as a software developer and I can tell you that technically they are also ahead of the competition in a number of ways and have been for quite some time.
Lastly regarding customers being afraid of the lawsuit, I would dare say that it would have the opposite effect. The way I see it is that iiNet is going out of their way to protect the rights and privacy of their customers; besides if AFACT wins it sets a precedent that all ISP will be obliged to uphold.
Would love to hear some other opinions....
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