United Comindico resellers stand firm

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Two Comindico resellers have pledged ongoing support to the stricken wholesale ISP, which was forced into administration when major shareholder Cisco Systems refused to offer more funds.

Two Comindico resellers have pledged ongoing support to the stricken wholesale ISP, which was forced into administration when major shareholder Cisco Systems refused to offer more funds.

Retail ISP KBS Internet and digital entertainment provider AUSTAR have promised to keep supporting Comindico through the voluntary administration process that began in September.

John Porter, CEO at AUSTAR, said AUSTAR had agreed to extend its contract with Comindico for dialup internet services.

The troubled ISP would keep providing an appropriate level of customer service, Porter said.

"Comindico has been a valuable service provider for AUSTAR for two years now," Porter said.

Larry Kestelman, CEO at KBS Internet, said the ISP - which owns Dodo consumer dialup and broadband internet services - would continue to use multiple suppliers but would not sever its relationship with Comindico.

"We continue to support Comindico during this transitional stage of its business," Kestelman said.

KBS Internet was "optimistic" Comindico would be successfully sold on and remain a competitive carrier, Kestelman said.

Comindico receiver Murray Smith, of accountancy McGrathNicol, said few customers had dropped Comindico in the weeks following its entrance into voluntary administration.

"The business remains stable and viable while a sale is finalised," Smith claimed. "There has been no material customer churn in the weeks [following] our appointment as receivers."

Offers to buy Comindico, which reportedly had haemorrhaged some $370 million in debts, close today with McGrathNicol.

 

 

 

 


 

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