The sale is designed to enable People Telecom to deliver on its strategy to drive revenues and profit focused on its core small-to-medium-enterprise, ADSL and mobiles businesses.

The transaction comprises People Telecom's high-speed optical-fiber data ring around the Perth CBD and a data co-location and interconnect center as well as customer revenues of $6 million per annum.

Agreements covering the acquisition were signed in Sydney and Perth by People Telecom and Amcom.

The expected completion date of the transaction is March 31, 2007.

People Telecom CEO, John Stanton, welcomed the commercial benefits it will generate.