National Telecoms Group (NTG) will undergo a restructure after a board decision to separate the existing sales operations into independent businesses.
NTG will create wholesale product packages including telephone and office equipment, software for call tracking and unified messaging as well as installation and support services. They will be distributed through independent dealers.
Ballooning staff and overheads forced the board to consider restructuring the company. It is now expected to reach a positive cash flow in April. Most of the sales staff have migrated to the new business units, the company said in a statement to the Australian Stock Exchange.
NTG directors would not comment on the restructure, due to legal proceedings which were due to begin in Melbourn on March 19. The hearing concerns a year-long investigation by the Australian Competition and Consumer Commission (ACCC) into alleged deceptive conduct by the telco provider.
As previously reported in ARN, the ACCC claims that NTG sales reps promised customers that by transferring over to NTG’s service they would pay less, or at least no more, than their current service, call rates would be cheaper, and customers would receive a new phone system free of charge. The ACCC argues that, in reality, the phone system was not free.