Australia On Line ponders sale of ACT and TAS customer base

Australia On Line ponders sale of ACT and TAS customer base

The Melbourne-base ISP is considering selling off its Internet subscribers in the two states.

Melbourne-based ISP, Australia On Line, is considering selling off its Internet customer base in the Australian Capital Territory (ACT) and Tasmania.

The company has 23 subscribers in the ACT and 127 subscribers in Tasmania.

It is currently seeking an expression of interest from other ISPs interested in taking over the nominated subscriber base. Australia On Line will consider bids to only take over customers in one of the two states.

According to Australia On Line CEO, Michael Bethune, this was part of a business operations review to identify the profitability of different customer segments. He stressed selling off its subscriber base in the ACT and Tasmania was not set in stone and a decision will be made based on the expressions of interest received.

“We are trying to firm up what the different options are for us,” Bethune said. “In the ACT in particular, you need to provide infrastructure distinct from what you would provide to NSW.

“It is actually a separate telecommunications area and as a consequence you have to provide as much infrastructure to deal with subscribers in the ACT as you would have to in the entirety of NSW. Tasmania is a similar case.”

A number of ISPs don’t service the ACT due to this reason, he said.

Should the sale go ahead, services to customers, including Australia On Line issued email accounts, will not be disrupted, according to Bethune.

Expression of interest closes on January 19. Australia On Line will come to a decision within the next few weeks.

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