Dingo Blue has been a 100-percent owned business of AGL since it was picked up by the energy titan for AU$22 million in December 2000. Whilst AGL claims it hasn't lost money in terms of its own profitability, it has written off AU$45 million in little over a year from the Dingo Blue venture.
"In the 15 months it's been owned by AGL it hasn't traded profitably," Dingo Blue spokesperson Geoff Donohue told ZDNet Australia. -We can't sustain that kind of loss any longer."
However, treading cautiously, Donohue said the telco's downfall was not going to be another One.Tel. AGL has made a financial guarantee, he said, that all staff will be well and truly paid out their entitlements. "No one will be worse off, all financial commitments will be made."
Staff were notified this morning of their plight, being told that the business will cease trading no sooner than eight weeks but no later than June 30. Whilst some will be kept on to maintain services to customers for the next eight weeks, Donohue couldn't give specifics about how many would remain for the long haul. As and when people are no longer required, he said, those positions will be made redundant.
Donohue described the Dingo Blue workers as a -committed group" continually trying to improve the business and get it trading profitably.
-I think a number of them were realistic enough to understand...it couldn't afford to continually make trading losses," Donohue said.
At the end of the day, he said, the Dingo Blue business was given -as great an opportunity as could be afforded".
Donohue said negotiations are underway for a smooth transition of the Dingo Blue network base to another provider, although he declined to say which providers were interested parties and whether or not they were interested in the Dingo Blue brand or just the customer base of 68,000.
Services to customers will be provided for at least the next eight weeks, although no new accounts will be established.
Donohue said customers do not need to take any action and will be notified of updates via e-mail and letters or can call the information line on 1300 301 455.
As a former employee I'd like to say farewell to the funnest place I've ever worked at, good luck to all my friends still there, and SUCKED IN to all the $hitbags. You know who you are. :)