Having long-touted itself as more than a modem company, Netcomm last week consolidated its move into broadband services, announcing the acquisition of telecommunications company Van Gogh Investments (VGI).
Netcomm will spend the next few months transforming itself into a digital subscriber line carrier around the country after shareholders approved the issue of 2 million ordinary shares, 5 million options exercisable between July 2001 and 2003, and 7 million options exercisable between July 2002 and 2004 for the acquisition of VGI.
Netcomm managing director David Stewart told ARN the company had signed a memorandum of understanding to acquire the company some time ago, and with the go-ahead from shareholders, Netcomm would roll out digital subscriber line (DSL) services across the metropolitan centres of Sydney and Melbourne, with the first exchange installed by Christmas.
"VGI was started by a group from the telecommunications industry with the intention to roll out asymmetric digital subscriber line (ADSL) services and become a carrier, so we have had those people on board for a couple of months," Stewart said.
"The roll out means installing our digital subscriber line access multiplexer (DSLAM) equipment in telephone exchanges, but our intent is to sell services via our traditional sales channels."
Mass production of the Netcomm DSL modem range is due to begin shortly, and the company has a further three modems in the development stage. Netcomm plans to sell the modems through retail channels such as Harvey Norman and Officeworks, with particular focus on the small and medium business market rather than the corporate sector.