Internet service provider (ISP), Amnet Broadband, has warned customers that its broadband and phone services are being shifted over to fellow Vocus Group (ASX:VOC) subsidiary, iPrimus.
“If you’re an existing Amnet customer you’ll be receiving a call or email from our team shortly to let you know about the switch to iPrimus,” the company told customers on its website.
“Most existing Amnet customers can be switched to a similar plan and in some cases our Amnet customers can be switched to a greater value plan,” it said.
Both Amnet and iPrimus are part of Vocus Group, with Amnet being brought into the fold when the publicly-listed telco acquired Perth-based internet service provider, Amcom -- Amnet’s parent company -- in mid-2015.
The decision to move Amnet services across to iPrimus and the efforts to shift customers over with them is part of the ongoing consolidation process being wrought at Vocus following several major mergers and acquisitions over the past few years, most notably the M2 Group, Nextgen Networks and Amcom.
“We are always thinking about ways to better serve our customers,” a Vocus Group spokesperson told ARN. “Amnet has been part of Vocus since 2015 and we have recently made the decision to consolidate the Amnet brand into our iPrimus brand to allow us to provide a better and more consistent service to our customers.
“We will be working with our customers in the coming months to ensure the transition is seamless and that our Amnet customers get to enjoy all the benefits of being part of the iPrimus community,” the spokesperson said.
It is understood that sales under the Amnet brand will eventually cease. It is likely the Amnet brand will be discontinued once the consolidation with iPrimus has reached its completion, although this may not happen immediately.
In August, Vocus announced a review of non-core Australian assets for potential divestment options.
According to an investor update issued on 23 October, the Vocus board determined that the Vocus New Zealand (VNZ) business would be prepared for sale. The company said at the time it was finalising the appointment of advisors and is aiming to complete a sale by the end of the 2018 financial year.
Likewise, the company said its board had also made progress with its review of its non-core Australian assets, and had appointed advisors for the sale of its Australian data centre assets. Other non-core Australian assets will continue to be evaluated with regard to potential divestment or disclosure, Vocus said at the time.
The move to sell off large chunks of its business comes at a difficult time for the publicly-listed telecommunications provider, which is set to face down a proposed class action by law firm, Slater and Gordon.
The proposed class action, first announced in September, alleges that the publicly-listed telco misled shareholders over its FY17 financial guidance.
In August, Vocus revealed its preliminary, unaudited financials for the 2017 financial year, showing that the company brought in a net profit after tax (NPAT) tally that came in $152.3 million below the company’s guidance range of $160 million to $165 million.