iiNet takes Netspace: The benefits of scale

Having recently reached 460k broadband subscribers, TPG appeared to have  snatched third place in the fixed broadband market. But any glory was short lived,  with iiNet  reclaiming its number three position by announcing the acquisition of Melbourne based Netspace.   In exchange for $40m, iiNet has added ~70k broadband subscribers , bringing it to 520k broadband services in operation. But is bigger better?