Internet service provider TSN Internet made the decision to divest its broadband business outside NSW almost three months ago but suffered a setback last weekend when the buyer pulled out, said its founder Michael Saunders.
iTnews reported that the Port Macquarie-based TSN had churned its non-NSW customers to Sydney ISP Comcen.
Saunders said about 120 customers were affected: "We made a decision about three months ago to check out of the other states".
"We got approached to sell our customer base but at the last minute the first sale fell through," he said.
"We decided to continue along the sale path and Comcen stepped up a day later and said, ‘We'll take the customers'."
He denied user speculation that the decision to churn customers to Comcen was caused by the ISP being cut off by a supplier.
He said it was caused by the sale of the customers.
"It was simply unrealistic for us to be in Tasmania and Queensland so we sat down and made a business decision about what was realistic," Saunders said.
Saunders will focus the ISP on a DSLAM rollout in the Sydney metropolitan and regional NSW. It will deploy five such Ericsson multiplexers in Sydney and two in regional locations.
Saunders said he was shopping TSN to a "few venture capital firms" in the hope of expanding its rollout.
And he said TSN would pursue unlimited internet offerings but only to customers on its own Sydney DSLAMs.