Early growth during the Internet boom was hampered by the ability of Telstra (not releasing Bigpond as an ISP until 1997) to cope with the demand for needed telephone lines and by the sheer competitive pressure in the Perth market, which had a comparative oversupply of low-cost providers.

[citation needed] In 1997, due to growing demand for infrastructure and an increase in staff numbers, the company relocated to the central QV.1 building.

Additionally, during the same period, the Western Australian Internet Association established a peering and interconnection arrangement called WAIX[2] among its members, including iiNet and several other Perth-based ISPs.

In 1998, iiNet's founding partner, Michael Malone, acquired the company entirely and subsequently listed it on the Australian Securities Exchange in September 1999 (ticker symbol IIN).

The retail arm had been neglected, and the company moved very late into ADSL, meaning that it had difficulty positioning itself as a broadband player.

In late 2004, throughout 2005 and into 2006, iiNet moved to introduce their own DSLAM infrastructure (colloquially known as iiSLAMs or iiDSLAMs in the industry) into telephone exchanges Australia-wide.

In 2006, iiNet were trialling its MSAN services in three Perth telephone exchanges; but release and expanded trial of these has since been put on hold until further notice.

This would result in a lower line rental price for its customers and free additional add on options to the phone service.

Initially, the company advised it intended to resume trading on the ASX the following week, but on 21 April, a local newspaper, WA Business News, speculated that "One line of thought is that uncertainty on behalf of iiNet's bankers, will result in the company embarking on a capital raising to address concerns over banking covenants, and provide its bankers with a measure of confidence."

[9][10] On 13 May, The West Australian business section reported on the matter, and claimed that founder Michael Malone had been "sidelined", and that the company was "open for takeover" according to analysts, who rated Singtel Optus as the most likely suitor.

They'll need to remain focused on consolidating their assets after what is expected to be a large drop in iiNet's share price when the stock resumes trading.

"[12] On 26 May, the stock was reinstated to official quotation and fell on its first trading day to A$0.85, after the 27 May edition of The West Australian reported that iiNet was in the red for the first time in five years and had vowed not to repeat costly mistakes.

January 2008 saw iiNet recommence its acquisition strategy with the purchase of the customer base of local Perth ISP Up'n'away.

[20] As part of the acquisition, Telecom New Zealand entered into a block-trade agreement to sell their 18.2% share holding in iiNet to "institutional and sophisticated investors", a move viewed by many[21] as a defensive action against a takeover bid from industry rival TPG.

[23] On 22 December 2011, iiNet announced it would acquire rival ISP Internode for $105 million with the transaction due to be completed late February 2012.

[24][25] On 4 August 2013 iiNet announced it would be purchasing the South Australian ISP Adam Internet for $60 million, after an identical bid by Telstra was rejected by the Australian Competition & Consumer Commission (ACCC) on grounds that the telco giant would use its acquisition of Adam to undercut its rivals' offers through the use of favourable wholesale supply deals.

Michael Malone, managing director of iiNet, went on to state that "AFACT is arguing that they don't want to talk to the police, and we should just cut the customers off".

[31] However, the Statement of Claim filed at the Federal Court does not indicate AFACT are asking for users to be disconnected but that iiNet subscribers are "prevented" from committing copyright infringement.

[36] In his reasoning, Gummow J. noted, in particular, that the current legislation did not provide a mechanism to deal with peer-to-peer infringements, and it needed to be addressed by the legislature.

iiNet Limited provides Broadband and IP telephone communication services to consumers and business customers.

Australian consumers can now sign up for services such as fibre to the home (FTTH), FTTC, HFC and fixed wireless.