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A deal has been agreed which will see Daisy Group's wireless internet spectrum sold to UK Broadband.

In an agreement worth £12.5 million, the internet service provider has chosen to pass over the WiMax licensing business which was once part of its Freedom4 subsidiary.

Daisy is believed to have chosen to move the spectrum over to PCCW-owned UK Broadband in order to make a range of cash savings and increase its focus on other parts of its operations.

Matthew Riley, Chief Executive of Daisy, said: "Our core strategy is to become the leading provider of unified communications to the SME and mid-market business customers.

"The WiMax and Wi-Fi businesses were not core to the Daisy Group, and the disposals mean we can focus on our unified communications strategy, as well as improve cash flow."

Earlier this month, Freedom4 revealed it is offering cheaper access to wireless broadband networks in South Africa to celebrate the current World Cup tournament.

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