Telcoinabox rides wholesale growth wave

Telcoinabox rides wholesale growth wave

Telecommunications franchiser and wholesaler anticipates $40 million in revenues from wholesale business

Telecommunications franchiser and wholesaler, Telcoinabox, has reported a growth surge after shifting its focus onto the wholesale business.

CEO, Damian Kay, attributed the results to voice resellers and Internet service providers (ISPs) looking at ways to simplify their business.

“Franchising is where we started and we’ve been very successful, but we've found that wholesalers, rather than having multiple relationships with carriers, billing, CRM and payment providers, they want to simplify their business because these guys in the scheme of things, are fairly small in the industry,” he said. “They can concentrate on growing and managing their business rather than having to worry about billing and can go from seven relationships to one. We’re like an outsourced vendor for them.”

By year’s end, Kay anticipates wholesale will represent 70 per cent of the business with annual revenues topping $40 million. Telcoinabox has 110 resellers.

“The growth on the wholesale side is much higher than our franchise business and we need to recognise that,” he said.

Next year, Kay plans to further expand the business in the UK and New Zealand markets.

“We went live in the UK in April and we’ve got two wholesale service providers delivering mobile services to 6500 users already,” he said. “We’re growing at a rate of 400 users a week.”

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