TNZ is repositioning AAPT as a network operator serving only corporate clients and providing network services on a 3rd party wholesale basis, including DSL broadband. AAPT has built up its own unbundled DSL network, currently with ~0.02m subscribers connected; these will pass over to iiNet's infrastructure after 12 months. AAPT may continue investment in this proprietary network to compete with incumbent telco Telstra (~1.74m 3rd party DSL connections) and Optus (~0.06m 3rd party DSL connections) in the wholesale provision of ADSL2+, and, in the longer term potentially VDSL, to other providers.
In the consumer broadband market, AAPT has struggled against competition from the likes of Australian incumbent telco Telstra, Optus (owned by Singapore incumbent telco, Singtel), iiNet and TPG. The telco's share of the retail broadband market has been in decline for nine consecutive quarters, falling to 2.1% at Q4 2009. From iiNet's perspective, the acquisition of AAPT's retail subscriber base will boost iiNet's broadband base to ~0.7m connections up from 0.5m in Q1 2010. In spite of its recent acquisitions, iiNet held 7.7% of the retail broadband market at YE 2009 - below its target of 15% and shares of key competitors. The incorporation of AAPT will raise this share towards 10%. Comparatively, Optus took 16.5% retail broadband market at YE 2009, and Telstra 44.7%.

Australia claims five large broadband players each with over 0.1m subscribers, and a well-developed DSL market via LLU (local loop unbundling), which brings relatively low ongoing costs for providers; DSL via LLU represented over 20% total DSL market by YE 2009. However, despite these conditions, access remains expensive compared to the most developed Western European markets where broadband has become more of a commodity. Screen Digest research shows that a standalone 20Mbit/s DSL service in Australia cost an average of A$86.59 (€59.67) per month in 2009. Equivalent products cost on average €18.23 in France, €21.87 (£18.15) in the UK and €21.93 in Italy; in Germany, LLU provider Arcor offered 16Mbit/s for €14.95 per month.

TNZ's divestiture overseas will also generate capital for the telco to invest in its domestic business. The provider has submitted extensive proposals to partner with New Zealand's government in building a national high-speed fibre broadband network. The government-proposed target is to reach 75% of the population with fibre by 2019, at a cost of NZ$1.5bn (AUD1.2bn).