ZipTel has secured a supply agreement through which more than 17,000 of its pre-paid AussieSim SIM cards will be distributed by travel agency, Trafalgar Travel, for a 12-month period.
Included in the contract is the option to renew for another 12 months once the year-long trial period elapses.
ZipTel co-founder and executive director, Keaton Wallace, told ARN the win is the result result of a six-month testing period during which the SIM cards have been deployed by Trafalgar via Pre Travel Tips for customers.
As part of the deal, Trafalgar will include an AussieSim starter pack with each customer’s outgoing travel documents, a strategy ZipTel expects will achieve maximum uptake.
The included SIM card contains a free $10 credit, and can then be topped up. ZipTel claims that the historical average revenue per user for each activated SIM card is about $95; the Trafalgar win has the potential to earn the telco $1.615 million.
The Perth-based telecommunications provider expects this to have a “transformative” impact on its earnings.
“We view this agreement as being a unique opportunity and key platform to accelerate the global commercial rollout of our AussieSim product,” Wallace said.
This contract follows a record month for ZipTel in which it sold 1440 AussieSim products, up 15 per cent on its May result.
Moving forward, ZipTel intends to increase its distribution footprint “as quickly as possible through major Australian retailers over the next six months,” according to Wallace.
It took the first major step in this direction with the appointment of Alun Cooksley earlier this month. As retail sales and distribution general manager for the AussieSim brand, a wholly-owned ZipTel subsidiary, he is tasked with creating new channels to market, and introducing emerging growth opportunities for the product.
ZipTel debuted on the ASX in June following the reverse takeover of Skywards with the goal of going head-to-head with the likes of Skype.