3 throws a lifeline to BigAir's iBurst customers

Stuart Corner
Wednesday, 19 November 2008 08:39

Your IT - Home IT

BigAir has negotiated a deal with 3 to migrate its iBurst wireless broadband customers onto 3's network ahead of the planned closure of the iBurst network on 18 December.

The iBurst network is owned by Commander Communications, now in receivership and the receiver earlier rejected BigAir's offer to buy the network saying it would close it down on 18 December.

3 is offering BigAir iBurst customers a free USB modem and two months free access if they sign up to a $39, 6GB per month service for two years.

BigAir said it had negotiated with a number of mobile network operators before settling on 3. "Combined with the generous download allowance of 6GB per month BigAir believes that this special offer represents one of the best value offerings in the market for its mobile broadband customers," BigAir said.

3 has the most limited wireless broadband coverage but it is also the closest match to that of iBurst which operated only in the major metro areas.

BigAir had already written down the cost of acquiring its iBurst business, in the last financial year, and said the impact from the iBurst network closure and migration of its mobile customers to 3 was not expected to materially impact previous EBITDA forecast for the current financial year.

In August BigAir reported that a shift in focus from selling iBurst and Unwired services to fixed services on its own business-grade fixed WiMAX network has produced significant improvements in its financial performance in FY08.