Telecommunications wholesaler and franchiser, Telcoinabox, has announced a one-year, $100 million contract extension with its most critical partner, Telstra Wholesale.
Under the arrangement, the company re-packages Telstra’s DSL product and offers three core speeds – 1.5Mbps, 8Mbps and 10Mbps. It will also upgrade most of its existing customers from lower speeds at no additional cost. The deal consists of $40m in annual revenue derived from DSL services, plus an additional $60m in landline, mobile and data business.
The contract is an extension of a three-year deal Telcoinabox already has in place with Telstra Wholesale that was set to expire in a year. Telcoinabox CEO, Paul Line, said Telstra had been its largest supplier by far over the past seven years, and the company would consider extending the deal further as the new deadline draws closer.
“Two years is a long time in the telco space, and we’ll be assessing all the options when the time comes,” Line said. “I think everyone is watching the developments around Telstra from a regulatory and legislative perspective. It won’t necessarily affect our relationship with Telstra, but it might change come of the dynamics in the market.”
The wholesaler previously threw its support behind the breakup of Telstra, claiming it would be a step towards giving the reseller market a fairer go.
Over the coming year, Telcoinabox plans on reinvigorating its franchise business model, which was placed on the backburner as it developed its wholesale business, Line said.
Last year, Telcoinabox signed a $16m deal with Telstra Wholesale to rollout high-end ADSL2+ broadband services to its customer base.