The acquisition is expected to increase Cable & Wireless Optus' share of the frame relay market by 6.5 per cent, making it the second largest provider of this service. MUAnet currently sells and supports a fully managed frame relay based managed data telecommunications service to small and medium sized enterprises throughout Australia.

The acquisition is considered strategically important for Cable & Wireless Optus, as it will give the company a strong foothold in the provision of managed data solutions to the small and medium business markets. Through its MultiNet Frame product, Cable & Wireless Optus currently services large corporate & Government customers.

According to John Filmer, Director of Cable & Wireless' Enterprise Division, "MUAnet is an extremely successful niche provider with an established customer base and a proven value proposition.

"Both companies view the acquisition as complementary. MUAnet has extensive experience in managing services extending to the desktop and server environment, while Cable & Wireless Optus has experience within the backbone network environment. The combination of these skills means Cable & Wireless Optus will be able to more effectively provide managed data solutions to a wider range of customers."

Cable & Wireless Optus will retain all MUAnet staff, including senior management. The business will also continue to trade under its own name.

MUAnet Director, Bruce Johansson, said, "MUAnet reached a critical point in its development where the business required a significant injection of capital to continue to grow its share of the frame relay market. Joining with Cable & Wireless Optus means MUAnet can continue to grow and provide its customers with a wider range of products than was previously possible."

The MUAnet service will be progressively transitioned to the Optus ATM backbone network over the coming 12 months in a move which is expected to significantly reduce network costs and increase the company's overall profitability. Other expected efficiencies include improved network access through Optus' increased points-of-presence and a reduction in customer connection times.

"The acquisition of MUAnet will also allow Cable & Wireless Optus to cross sell other services, such as fixed and mobile telephony services, to MUAnet's existing customer base," added Mr Filmer.

For more information:
Glen Thomas
Cable & Wireless Optus
Phone: 02 9342 6064
Mobile: 0411 254 380
Email: glen.thomas@yes.optus.com.au