Megaport wins against PIPE Networks at the TIO

Megaport is pleased to announce that the Telecommunications Industry Ombudsman (TIO) has resolved an objection made by PIPE Networks in Megaport’s favour.

As previously reported on this blog, TPG Telecom (owner of PIPE Networks) objected to Megaport installing fibre into its data centres at 127 Creek St, Brisbane and 148 Brunswick St, Fortitude Valley.  This has temporarily prevented Megaport from supplying services to a large number of PIPE Networks’ customers.

Megaport believed (and still believes) that PIPE’s objections were intended to frustrate Megaport’s market entry and prevent PIPE’s telehousing customers from acquiring competing telecommunications services from Megaport. PIPE’s submissions to the TIO argued that Megaport had no right to supply services to PIPE’s telehousing customers and that those customers “will be able to obtain such connectivity as is made available to them by the Data Centre operator”.

The TIO decision rejected every argument made by PIPE against the installation of Megaport’s infrastructure. Significantly, it confirmed that PIPE’s telehousing customers are regarded as “occupiers” of the building, and that Megaport can exercise its legal rights to install “in-building subscriber connection equipment” to supply them with competing services. The TIO decision allows Megaport to install its facilities in 148 Brunswick St from 16 June 2014. Megaport expects that the TIO’s decision in relation to 127 Creek St will be issued shortly.

Megaport CEO, Bevan Slattery, said that “The sad part of this situation is that PIPE/TPG’s position isn’t isolated and that Megaport is finding that non-independent data centre operators usually operated by carriers are attempting to frustrate Megaports entry into the market. Independent data centre operators welcome Megaport with open arms and understand the value we bring to their ecosystems. It’s important for organisations that are looking for colocation to look beyond “price” and consider whether they should put their IT infrastructure in a thriving independent ecosystem or in a zombie carrier data centre – the “undead” of colocation.”