[LINK] Fibre Networking - Transact sells to iiNet

[Nick Ross]

>From this Lateline report it looks like the company knows its days are
numbered but that while 'lesser' areas are being upgraded, there's profit
to be had

http://www.abc.net.au/lateline/business/items/201111/s3373610.htm

N

On 23 November 2011 14:15, kim holburn <kim at holburn.net> wrote:

> Seems to me that this - ownership of the last mile by a company was
> what NBN was created to avoid.  This is a strange thing.  Transact is
> not FTTH/FTTP, it is FTTN nor does it have full coverage even in the
> suburbs it covers.
>
> Does this mean NBN is giving up FTTP for transact suburbs or does this
> mean that TransACT has given up and has realised that it can't sell to
> NBN because NBN doesn't want it?
>
> Kim
>
> On Wed, Nov 23, 2011 at 11:26 AM, Tom Koltai <tomk at unwired.com.au> wrote:
> > http://www.smh.com.au/it-pro/business-it/investors-lose-in-transacts-sal
> > e-20111121-1nqwx.html#ixzz1eT3vWCSx
> >
> > Quote/
> > TVG Capital, Motor Trades Association of Australian Super and ACTEW are
> > among investors that will get $60 million from the sale of Canberra
> > broadband provider TransACT to iiNet - an asset that cost them $280
> > million to build over 10 years.
> >
> > Perth-based iiNet expects to acquire 4500 kilometres of broadband
> > network and 40,000 customers through the deal, including 50 lucrative
> > contracts with government departments.
> >
> > Chief financial officer David Buckingham said iiNet was ''paying $60
> > million for the business including the network and that is the cost to
> > us of this business''.
> >
> > Advertisement: Story continues belowiiNet expects the deal to be
> > earnings accretive and would fund the acquisition through existing cash
> > and debt facilities, leaving it with a gearing ratio of 70 per cent.
> >
> > Chief executive of iiNet, Michael Malone, said TransACT's infrastructure
> > was unlikely to be over-built by NBN Co's fibre optic network.
> >
> > ''Over-building TransACT, particularly in Canberra, would be
> > commercially and politically odd,'' he said.
> >
> > TransACT has been on the market since June 30 and the deal with iiNet
> > should be done by November 30. It has eight shareholders who contributed
> > $255 million in equity. TransACT was carrying a loss of $200 million at
> > June 30 according to company documents.
> >
> > TransACT chief executive Ivan Slavich said 43 per cent shareholder, TVG,
> > had to sell its stake to crystallise its investment. TVG invested $US29
> > million in 2000, its website said. ''[TVG] established super funds which
> > last for 10 years. At the end of the 10 years they need to close those
> > funds and TransACT was one of the last investments,'' he said.
> >
> > Canberra's electricity provider ACTEW has invested $60.8 million in the
> > company since 2000, giving it an 18 per cent stake valued at $4.7
> > million. It expects to make a ''modest profit . above the $4.7 million
> > carrying value,'' a spokeswoman said.
> >
> > A spokesman for MTAAS would not comment for commercial reasons.
> > /Quote
> >
> > It seems that Fibre infrastructure returns would depend on first
> > minimising anti-competitive interference.
> >
> > _______________________________________________
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> > Link at mailman.anu.edu.au
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> >
>
>
>
> --
> Kim Holburn
> IT Network & Security Consultant
> Ph: +61 2 61402408  M: +61 404072753
> mailto:kim at holburn.net  aim://kimholburn
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