PIPE started life in 2002, largely in response to the cost of transmitting data within Australia through the large telcos' networks. It established Australia's first commercial internet peering exchanges, where ISPs could connect directly to each other, sending data cheaply via PIPE rather than having to pay high rates to send it via the incumbent telcos.
PIPE then expanded its business to provide fibre optic runs to Telstra exchanges, making it financially viable for telcos to install their own ADSL2+ equipment into exchanges. (Previously, ISPs had to pay Telstra's high rates for connectivity to each exchange, making it prohibitively expensive to get data from the ISP to ADSL2+ DSLAMs.) PIPE now covers 50% of east-coast exchanges with its fibre-optic backhaul.