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Vodafone NZ gets ihug

Australian internet service provider iiNet said Monday that it has sold its New Zealand business, ihug, to Vodafone New Zealand for NZ$41m (£14m).

iiNet, which acquired the Australian and New Zealand operations of ihug in 2003, said that following a strategic review of the group it has decided to focus on the core Australian business.

iiNet chairman Peter Harley said ihug staff are expected to be retained by the purchaser.

The move is further evidence of Vodafone’s creep into the fixed line space in order to benefit from converged technology offerings.

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