CallPlus Forms Alliance with People Telecom

CallPlus Forms Alliance with People Telecom for Expansion into New Zealand and Australia

Benefits for new and existing customers with branches in the markets

CallPlus Services Limited, New Zealand’s 100% kiwi owned and third largest full service telecommunications and internet company and People Telecom, an Australian full service telecommunications company, have signed a reciprocal agreement to expand operations in each others markets.

Cognisant of the heavy investment in expanding overseas, under the alliance CallPlus will manage the New Zealand operations on behalf until People Telecom till it chooses to open directly. This agreement also enables CallPlus to offer fixed wire and data services to customers in Australia.

Martin Wylie, CEO of CallPlus Services Limited said the reciprocal arrangement is great news for its existing customers in New Zealand with operations and branches in Australia.

“With the recent announcements on deregulation, the New Zealand market will become increasingly competitive as global telecommunication players enter over the next few years. Our focus remains on product innovation, creating customer value and investment in infrastructure to compete and lead in the evolving telecommunications environment”.

Ryan O’Hare, CEO of People Telecom said the arrangement enables a fast and inexpensive entry into the newly deregulated New Zealand market.

“Rather than investing heavily in starting up our own operation in New Zealand, we believe it is prudent to enter into an agreement with CallPlus until People Telecom has achieved the critical mass to warrant the complete development of our own operations.

Working with a trusted partner such as CallPlus, will enable us to offer services across the Tasman at very little cost, while creating new opportunities for customer, revenue and profit growth.”

This agreement will allow CallPlus and People Telecom to compete directly with other trans Tasman telecommunication firms and provide customers with:
• a single telecommunications management service
• inter office cost savings across the two countries
• expansion of their VPN data services to include New Zealand and Australia simplifying data networks

CallPlus expects to finalise the arrangement by the end of June 2006 with People Telecom in order to commence offering the service in the new financial year.

-ENDS-

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