ispOne has struck a partnership with Australian-based VoIP provider, engin, to provide telephony services to its wholesale customers.
CEO for the virtual ISP, Zac Swindells, said its latest vendor deal would give partners the ability to create voice and data packages. "ISPs are really struggling in today's market," he said. "The margins on broadband are now in single figures. ISPs have to start bundling for profits or they will perish.
"We are trying to educate our clients to become more of a communications services provider."
Under the new arrangement, ispOne resellers would be able to brand the product as their own, as well as do all of the billing and first level support, Swindells said.
"Our ISPs can set their own pricing structures," he said. "This means they can compete directly with the engin retail product. It is imperative that the smaller providers have some branding of their own." ispOne has more than 60 Australian partners. The majority are small ISPs and systems integrators working in the home and SME markets.
The company chose engin's products for its ability to integrate with broadband technology, Swindells said.
engin CEO, Ilkka Tales, said the new partnership with ispOne allowed it to gain quick access to a number of communications providers.
The deal was also part of the vendor's broader plans to expand into non-retail markets.
"Wholesale is important for us - it's part of the traditional channel mix," he said. "We are increasing our reach through ISPs."
Tales said engin had also signed a wholesale agreement with ISP, aaNet, last month.
Swindells said ispOne was now trialling free usage plans for the first three months with selected clients.
"Some partners also want to do packages based on unlimited calls around Australia," he said. "This is the impetus for demand in the home." The company was also looking at offering a soft phone with free point-to-point calls to all of its resellers, Swindells said. End-users could then have the option of migrating across to a full version of the VoIP product for additional services.
Alongside VoIP, ispOne will launch a wholesale PSTN service next month. Swindells said it would also bring out a video product later this year.