Vocus eyes layer 3 service on NBN

Wholesale IP transit provider Vocus has indicated it could branch into ‘whiteboxed' layer 3 services in a national broadband network (NBN) world.

The ASX-listed voice and data network operator's chief James Spenceley told iTnews it had been "working closely with NBN Co" on issues like voice traffic and "the way the NBN will be wholesaled".

"We see a huge area of opportunity for us to become an independent wholesaler to smaller ISPs," Spenceley said.

"We'll possibly offer a layer 3 product to the market if there's demand from retail service providers.

"The concept of everyone going completely virtual is a good thing. We'll put up our hand to run the network side of things."

NBN Co has repeatedly indicated it invest only in a layer 2 wholesale network.

A Layer 2 network is one in which NBN Co would only provide the physical layer (the fibre) and the data link layer of the network - while the internet protocol and other services above those layers would left to ISPs and other organisations to provide.

Spenceley said Vocus' core IP transit network business remained strong. He said new customer sign-ups were continuing unabated, while the firm's existing base was also growing in its usage of Vocus' services.

"Download caps are increasing," Spenceley said. "People are buying more bandwidth."

Vocus was the subject of a $20 million buyout offer by the Investec-backed First Opportunity Fund in April.

It started trading on the Australian Stock Exchange on July 8. A public offer via prospectus also closed oversubscribed.

It counts the likes of iiNet, Internode and TransACT among its customers.