Telcoinabox signs $30m deal with Telecom

Telcoinabox signs $30 million 3G mobile and data deal with Telecom NZ

Telecommunications wholesaler and franchisor, Telcoinabox has signed a wholesale agreement this week with Telecom Wholesale to become their first mobile virtual network aggregator of the W-CDMA network.

The 3-year deal will enable Telcoinabox to wholesale mobile voice and data services on the W-CDMA network, NZ’s fastest 3G network

“This is an exciting time for us as we know from our global experience and industry trends that mobile and mobile data are the big growth opportunities. We have seen strong growth in mobile data and voice with mobile substitution for landlines, and with an expected growth in excess of $400 million over the next 2 years this makes mobile a key product for our service provider’s success,” says Telcoinabox NZ CEO Shannon Fisher.

This deal is expected to appeal to SMEs, associations and unions, resellers and corporations that see the commercial potential in offering telecommunication packages under their own brands to existing customers.

“We have been in discussions with Telecom New Zealand about rolling out mobile since we launched Telcoinabox in New Zealand in April 2009 and we were keen from the outset to jump on the W-CDMA network but we wanted to wait until the initial network start up problems were ironed out, which are usual with any new system. We believe that Telecom’s W-CDMA network is the best solution for our service providers and that’s why we selected Telecom Wholesale as our mobile partner.”

Fisher says that it was critical to the business that they didn’t rush in and go with any product just so Telcoinabox’s service providers had something to offer. They wanted to do the research and be sure they had gone with the right solution.

“Timing is everything and customers demand the best. By expanding our product portfolio combined with our support, our service provider network achieves wide network coverage and the highest Internet speeds in the country.”
The new deal adds further capability to Telcoinabox’s existing portfolio in New Zealand and provides extra leverage for service providers to penetrate into the SME, corporate markets and their existing customer bases.
“By partnering with Telcoinabox we hope to broaden the availability of our W-CDMA network to more markets. “said Nick Clarke, Telecom Wholesale General Manager Marketing.

“We are excited by the potential of Telcoinabox based on the success of its massive growth in Australia servicing more than 50,000 residential and business customers.

“We also see a great future in wholesale customers. As companies realise that offering telecommunication services to their existing customers can create an additional profit centre for their businesses, we see ourselves as the ideal network partner for Telcoinabox to reach this market.”

The mobile soft-launch commences this week through Telcoinabox’s service provider network with a full launch expected in July.

The deal is projected to generate $30 million in revenue over the next three years.

Telcoinabox has an established service provider network and is in discussions with several potential wholesale customers who want to become their own telco.

Telcoinabox NZ is based in Wellington.

ENDS

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