Exetel makes $40M Telstra Ethernet Access play
- 21 November, 2017 11:40
Exetel has struck a multimillion-dollar, multi-year deal with Telstra Wholesale to supply Telstra Ethernet Access to its corporate customers, in a move aimed at boosting the telco’s growth by meeting surging demand among small to medium-sized enterprises (SMEs).
The deal, which Exetel claims seals its position as Australia’s third largest purchaser of Telstra Wholesale’s Ethernet Access, represents more than $40 million over the coming two years.
The resulting speeds available to the telecommunication provider’s network will be up to five times more than what the existing network provides, the company said.
The move comes after a 400 per cent increase in Exetel’s corporate division increase over the past four years, with the company now claiming a corporate customer base of over 10,000. At the same time, Exetel has seen its average bandwidth per business customer more than triple over the past two years, to over 67 Mbps this year.
Exetel said it predicts that its average business customer bandwidth will exceed 100 Mbps by the end of the 2018 financial year.
For Exetel CEO, Richard Purdy, the new deal with Telstra Wholesale was taken to meet the growing demand.
“Having grown four-fold in as many years our corporate business is at an inflexion point, driven by the inexorable growth in demand for reliable bandwidth from our SME customers as they increasingly take up cloud-based services,” Purdy said.
“Telstra Wholesale is the ideal partner for Exetel to continue this growth. Our mutual commitment to customer service, their straightforward approach, coupled with Telstra’s unique coverage makes today’s decision a very easy one,” he said.
The deal with Telstra comes just weeks after Exetel revealed it would be the first partner to roll out Optus Wholesale home wireless broadband solution.
The newly-launched solution was to be made available for its mobile virtual network operator (MVNO) partners and it is an addition to Optus Wholesale’s existing fixed broadband offering.
“We’re excited about the market opportunity of the Exetel Home Wireless Broadband product,” Purdy said at the time. “Our customers are always looking for choice in internet connectivity, and this product will complement our existing product offers in market.”