Voyager parent deal includes 27,000 Kiwis

By MICHAEL FOREMAN

Voyager New Zealand's 27,000 consumer subscribers are included in the $A300 million deal by Melbourne internet service provider Eisa to buy Voyager's Australian parent OzEmail.

Eisa will pay MCI-Worldcom subsidiary Uunet between $A300 million ($389 million) and $A350 million for OzEmail, "dependent on final customer numbers," valuing OzEmail's subscribers at $A700-1000 each.

This compares with the $NZ1200 each paid for Ihug's customers in its merger with Force last week.

Eisa chief executive Damien Brady promised that the company's goal of providing "the best connection, content and e-commerce services" would now apply to Voyager NZ.

"Voyager will be comprehensively extended and improved to provide compelling content for New Zealand customers."

Mr Brady hinted that Voyager would offer a flat-rate connection plan. He considered its connections to be the third or fourth-best in New Zealand, but wanted to be "number one."

In Australia, Eisa offers a range of service plans, including an unlimited download account for $A39.95 a month or $A399 a year, as well as access by pre-paid cards.

Mr Brady denied reports that Eisa had only paid a deposit for OzEmail and would need backers to complete the purchase.

"Eisa has completed the transaction, and Uunet knows how it will be funded. We are rolling it out at the moment. It is not contingent on anything."

Eisa, with OzEmail, will become Australia's largest internet service provider (ISP), with up to 500,000 subscribers - 40,000 to 50,000 more than Telstra Big Pond.

Mr Brady said the Australian Competition and Consumer Commission, which stalled Telstra's proposed purchase of OzEmail, would investigate the takeover as a standard transaction and make a ruling next Wednesday.

"We expect it to be favourable."

Eisa, with 100,000 subscribers, is one of Australia's fastest-growing ISPs. This time last year it had only 30,000.

Uunet spokesman Mike Ward said the deal would make Voyager "the platform from which Eisa will compete aggressively in New Zealand."

Eisa is the second Australian ISP operating in New Zealand. Telstra acquired NetLink from Victoria University last year.

The deal ends months of uncertainty for Voyager NZ staff and customers since Uunet began to move away from the retail internet market.

"We knew that it was coming. It's not a shock revelation," said Voyager NZ general manager Bob Davis.

"Over the last four months we have prepared for this by separating the corporate and consumer sides of the business. It's similar to what OzEmail has done in Australia."