Updated: Megaport declares victory over 'zombie carrier data centre'

PIPE mulling court action over the issue, spokesperson said

Megaport has won its dispute with TPG over installing fibre in two of the data centres run by PIPE Networks, a subsidiary of the telco.

According to the network interconnection services provider, the Telecommunications Industry Ombudsman has ruled in its favour.

"An objection was lodged by Pipe Networks about proposed activities by Megaport," a TIO spokesperson said.

"The Ombudsman made a decision about this objection that effectively means Megaport can continue with its activities."

Megaport CEO Bevan Slattery first reported on the dispute in a 14 January blog entry.

TPG objected to Megaport providing services to customers in PIPE's DC1/2 and DC3/4 data centres.

As a result of the dispute, Megaport stopped accepting new orders for services in PIPE's data centres.

"The TIO decision rejected every argument made by PIPE against the installation of Megaport’s infrastructure," a Megaport statement posted on the company's blog today said.

"Significantly, it confirmed that PIPE’s telehousing customers are regarded as 'occupier' 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."

"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," the statement quoted Megaport's CEO as saying.

"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."

"PIPE considers that access rights under Schedule 3 to the Telecommunications Act may not be as broad as the TIO’s findings imply, insofar as they deal with accessing data centres," a spokesperson for the data centre operator said.

"If Schedule 3 entitles access to all data centres, which presumably includes all Telstra exchanges, NBN POIs and other commercial data centres, there is the potential for a significant shift in the business models for data centres across the country."

The spokesperson said that PIPE is considering court action over the issue.