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M2 buys up more Australian customers

Austar exits mobile biz

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Regional pay TV provider Austar has sold its mobile assets to the M2 Telecommunications Group for $2m. The transaction includes approximately 15,000 active Austar mobile customers (and associated data records), which generate annual revenue of $10m.

Austar’s mobile base has been falling, with the company revealing in its half-year results a decline from 19,970 in the previous financial year to its current level of 14,675.

This continues an exit from non-core businesses from Austar, which earlier this month sold its 2.3 GHz and 3.4 GHz wireless spectrum to NBN Co.

M2 has been expanding its business by acquiring customers from other small carriers and ISPs. It will add the Austar customers to its Southern Cross Telco business. Other M2 acquisitions have included Clear Telecoms (paying $24.5m for 20,000 small-medium business customers), and the telecom assets of Commander Communications in 2009. ®

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