IPStar, ETT settle NSO termination

IPStar’s parent company – IPA - has agreed to pay a $3 million deposit and $55,000 under the re-purchase of stock terms of the National Service Operator (NSO) agreement.

ETT signed-up as IPStar’s exclusive National Service Operator on 1 January. At the time Larry Shutes (former ETT chairman) said: “We will be working on the one to two percent of the population that will never be covered by fibre because these are areas of the market where we know we can operate.”

At the time, ETT had hoped to grow the 25,000 customer base it inherited from IPS IPStar by targeting the 300,000 people represented in the "extreme" regional two percent of the country.

Things started to sour between the two companies in June and ETT was forced to seek an injunction from the Supreme Court of New South Wales, to stop IPSTAR from acting or implementing a purported notice of termination dated 30th May.
According to Jim Meehan, CEO of ETT the matter was settled with IPA, before a proposed arbitration hearing on 12 August.

“The brief and material terms of settlement of the dispute are; repayment by IPA of the deposit of $3 million paid under the NSO Agreement; Payment of IPA to ETT of an amount of $0.55 million under the purchase of stock terms of the NSO agreement; Return of IPA of certain stock held in inventory but not purchased,” stated Meehan to the Australian Stock Exchange.

According to Meehan financial accounts are in the process of re-adjustment to reflect the NSO settlement and will be published when available. However the NSO infrastructure is in the process of being dismantled to minimise overheads and should be achieved by late September.

“The existing Patloc business based on public internet kiosk access systems continues to operate profitably. The Board will consider existing opportunities within the telecommunications industry and other areas for further investment by the company,” said Meehan.