UUNet's launch into the marketplace this week has signaled a wakeup call to the local ISP market which has largely ingnored the Internet services requirements of big businesses.
The country's second largest ISP and MCI WorldCom subsidiary, OzEmail, has been split into two separate business and consumer focussed units as a result of the UUNet launch.
UUNet, also an MCI WorldCom subsidiary, will focus on the corporate Internet service market leaving the OzEmail to continue its focus on the consumer space.
OzEmail was acquired by MCI WorldCom for around $520 million in February this year.
According to telecommunications analyst, Paul Budde, very few local ISPs have seriously tried to address the Internet service needs of big business.
"UUNet has opened up a new market. It's a push in the right direction," he said.
Budde believes the majority of Australian ISPs are not yet sophisticated enough to cater for evolving strategic e-commerce related needs.
"I'm pretty sure that level of sophistication is missed in Australia," Budde said.
UUNet Australia and New Zealand's new managing director is David Spence, who also carries the title of CEO for OzEmail.
UUNet's first local hosting service will be available from October.