The company said in a statement to the ASX that the decision followed a review of its broadband business was aimed at maximising shareholder returns.

Chief executive and managing director Peter O'Connell said: "The broadband team has worked very hard and done an outstanding job creating industry leading products and processes. The decision to exit broadband was not easy and was made in light of unsustainably high wholesale costs, intense competition and the need to allocate the company’s capital appropriately.

“This transaction will enable the company to simplify its operating structure, defend and grow its core mobile and energy businesses, and invest in its technology platforms. We will continue to explore additional products and services that we can offer to our significant mobile subscriber base.

amaysim said it would enter the broadband market in July 2016 after buying the Internet service provider, Australian Broadband Services for $4 million.

In June last year, the company said it would offer its customers the first month free in a bid to snag a share of the NBN market.

Southern Phone is one of the larger providers of fixed line, mobile and Internet communications services in regional Australia. It plans to migrate amaysim’s fixed line broadband customer base onto its platform in November 2018. Customers will be notified by amaysim and no disruption is expected.

amaysim said it would recognise a non-cash impairment of approximately $7 million pre-tax and write down the carrying value of the broadband assets to zero. The impairment charge will be finalised after the transaction is completed and will be removed from underlying performance in the 2019 financial year results.