Wholesale data and telecommunication services aggregator Leading Edge Internet has been sold to one of its largest downstream customers, Bytecard.
Leading Edge Internet is a division of retail group Leading Edge and sells wholesale bandwidth and ADSL services from telcos AAPT, Comindico and Optus to other ISPs.
The group's internet division started in early 2001 and since then it had become apparent that this business was 'sitting outside the core activity' of the retail buying group, said Mark Graubner, GM at Leading Edge Internet.
“We were buying on a wholesale, not central buying basis. It sat outside the profile of the other groups,” he said.
He said the Internet group required “a lot more high level knowledge to manage” for it to move forward. It also had a significant amount of capital expenditure associated with it, Graubner added. “It would require more capital expenditure to drive the group forward,” he said.
Bytecard management and technical staff would continue to work for Leading Edge Internet, said Bytecard MD Brian Morris.
Administration of the business would be run out of Canberra with some work being fulfilled in Sydney, Graubner said.
Leading Edge Internet turns over around $6 million per annum.
The news follows the departure of Leading Edge B2B GM Glen Young, who had been in the role for only seven months. Ross Whitelaw, GM of Leading Edge Computers is now leading that division, following Young's decision to quit.