Comdek sells corporate ISP arm to Datafast

ASX-listed satellite and wireless broadband provider Comdek has sold its corporate internet service provision business, VianetAIP, to Datafast Telecommunications.

The amount of the cash deal, which took effect 1 July, was not disclosed by the companies.

Haydn Collins, managing director at Comdek, said the Perth-based company was concentrating on selling broadband internet services that took advantage of the government's Higher Bandwidth Incentive Scheme (HiBIS) initiative for regional and remote parts of Australia.

The VianetAIP sale would fund that focus, he said.

"The exceptional expansion in the provision of broadband HiBIS internet services throughout Australia will provide Comdek with strong revenue and profit growth," Collins said in a statement to the ASX.

Comdek had also won approval to provide high speed wireless broadband services to about 25 regional locations in Western Australia under HiBIS, he said.

That added HiBIS approval was expected to generate some two or three million in added revenue for Comdek, Collins said.

The Commonwealth Department of Communications, Information Technology and the Arts (DCITA) initiative HiBIS has a value of around $107.8 million.

The aim is to provide registered ISPs with incentive payments to supply higher bandwidth services in regional, rural and remote parts of Australia at prices comparable to those in metropolitan areas.

"HiBIS is part of the Australian Government's contribution to the National Broadband Strategy and is the Government's response to recommendation 6.3 of the report of the Regional Telecommunications Inquiry," DCITA said on its website.