The company was founded in 1991 by Robyn Taylor and Managing Director Simon Hackett,[1] Internode was the first ISP to offer ADSL2/2+ services in Australia, by installing their own DSLAMs in Telstra exchanges.

On 22 December 2011, Western Australian based internet service provider iiNet announced the acquisition of Internode in a deal worth $105 million.

In November 2013, it was announced that Simon Hackett would be leaving Internode and the iiNet Group to join the board of the NBN Co which has been tasked by the Australian Government to provide the next generation of broadband to Australia.

As such, it is positioned as a carrier grade, packet based voice service, and is not susceptible to quality problems created by external Internet path failures or congestion.

While the original NodePhone did not allow incoming PSTN calls, NodePhone2, released on 23 April 2007, is a full two-way VoIP service.