A Web hosting business and a burgeoning telecommunications provider have found a way to achieve scale without spending up on marketing - by targeting each other's customers.
Telecommunications provider People Telecom and OzHosting.com, the Web Hosting arm of ASX-listed Destra, have signed an agreement through which they will offer their services to each other's customers.
People Telecom sells voice and data telecommunications services and in its short two-year history has managed to rack up over 20,000 customers. Ozhosting.com has a similarly sized base of web hosting, e-commerce and domain name customers (15,000), most of which were acquired through acquisition.
The two companies have struck up an agreement whereby they will pitch their services to each other's customers through a series of marketing materials and outbound telesales.
"People like to buy from a one-stop shop," explained Destra chief executive officer Domenic Carosa. "With this agreement, customers can come to either supplier for both their telecommunications and their hosting needs."
Carosa said the bundled services, the details of which are still being finalised, will be co-branded and available from both companies' Web sites by the end of the week.
He is confident that both companies will provide the customers with adequate support levels and that the pricing of the bundles will prove "very competitive" with those large telecommunication players that dominate the market with such bundled, single-bill solutions.