Utilities company AGL has purchased a $22 million entry ticket into the mass telecommunications market, buying the dingo blue business from Cable and Wireless Optus.
The dingo blue business offers the full gambit of mobile, local, long distance and international phone calls as well as Internet connections, and has signed up more than 74,000 customers in less than 18 months. While not prepared to comment on whether dingo blue was profitable to date, AGL group manager for corporate affairs Bill McLaughlin expects the subsidiary to be earnings positive while under AGL management.
AGL has signalled the dingo blue business will still operate under the dingo blue brand, and will be bundled with AGL's gas and electricity services to be offered to AGL's 2.5 million-strong customer base.
The acquisition follows AGL's recent purchase of TransACT and COMindico, both aimed at extending AGL's reach into broadband network infrastructure.
"We bought dingo blue as an ongoing concern, a separate business, as it is a mainstream brand in its own right," said McLaughlin. "But in the long run, it will help AGL develop a larger telecommunications-based business."