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June 15, 2010

$30 million 3G mobile and data deal with Telecom NZ signed by Telco In A Box

Telecommunications wholesaler and franchisor, Telco In a Box NZ 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 enables Telco In A Box to wholesale mobile voice and data services on NZ’s fastest 3G network, the W-CDMA network.

Shannon Fisher, CEO of Telco In A Box NZ explains, “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.”

This deal is predicted 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,” said Fisher.

Fisher continued to explain that it was critical to the business that they did not rush in and go with any product just so Telco In A Box’s service providers had something to offer. They wanted to conduct the research and ensure they had chosen 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,” he said.
Telco In A Box’s existing portfolio in New Zealand has been further extended by the new deal and provides extra leverage for service providers to penetrate into the SME, corporate markets and their existing customer bases.
Nick Clarke, Telecom Wholesale General Manager Marketing explained, “By partnering with Telcoinabox we hope to broaden the availability of our W-CDMA network to more markets. “

“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 soon through Telco In A Box’s service provider network with a full launch expected in July.

The deal is expected to make $30 million in revenue during the next three years.

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

Telco In A Box NZ is based in Wellington.