Telcoinabox lands three year white-label services deal with Telstra

The contract involves white-label system and enablement services for Telstra's wholesale channel
Inabox Group CEO, Damian Kay

Inabox Group CEO, Damian Kay

White-label telco, IT and cloud services provider, Telcoinabox, has built upon its relationship with Telstra Wholesale,  securing a three-year contract to provide white-label system and enablement services for Telstra’s wholesale channel.

Telcoinabox is business unit of Australian Securities Exchange-listed Inabox Group (ASX:IAB). 

The services will complement wholesale telecommunications supply, and provide a further offering for operational and technical back end for Telstra Wholesale customers to launch and manage telecommunication services for their customers.

Telcoinabox was selected following a competitive global process that identified their proven capability to deliver end-to-end enablement services across both fixed and mobile.

The new capability combines Telstra's wholesale offering for fixed and mobile networks with the enablement capabilities of Inabox Group. It will provide the full service, end-to-end capabilities that will enable any company with a retail channel to develop new revenue streams by launching their own mass market telecommunications services.

The combined capability will provide a ‘one-stop-shop’ to customers that includes service provisioning,
ISP and network functions, customer billing, customer care and technical support as well as access to
Telstra Wholesale’s network.

As part of the on-boarding process, Telcoinabox will develop interfaces between Telstra’s customer-facing systems and Telcoinabox’s back-end systems, to enable it to service its customers with a white-labelled solution.

Under the deal, Telcoinabox will earn development fees and recurring software-as-a-service revenue, which will be driven by increasing customer sign ups and volume of services provided.

Telstra Wholesale executive director of products and marketing, Terry Scerri, said creating this white label end-to-end service, opens up Telstra’s wholesale network to an emerging group of customers who want to offer these services to their own customers, without the complexity and expense of building and managing their own in-house service and support centres.

Inabox CEO, Damian Kay, highlighted it was a huge win for the company, clearly recognising the strength in its enablement offering.

“This deal is one of a number of recent opportunities the management team has been pursuing and the company expects its investment in its enablement capabilities to allow it to continue to secure additional customers and significantly drive enablement revenues in 2018 financial year and beyond,” Kay said.

“Offering a range of enablement services to allow brands and resellers to provide white-label telco, managed IT and cloud services is the real strength of Telcoinabox’s capabilities and a key point of differentiation between us and our competition.”

Recently, Inabox Group revealed plans to cut back its 300-strong employee headcount by around 10 per cent in a bid to ease company costs after its finances were hit by poor performance within its Hostworks business, which it acquired earlier this year.

The company told shareholders on 4 December, it had finalised the cost reduction program first flagged in early November, after revising its earnings forecast, revealing that Hostworks would have a negative impact on the group’s financial performance.

It is anticipated the cost reduction program will result in cost savings of $2 million or more and is expected to cost approximately $700,000 to implement.

Earlier in the year, the company experienced a surge in new resellers, signing up 27 new retail service providers (RSPs) in the past five months leading up to June.

The haul of new RSPs were largely attributed to its Telstra 4G offering and emerging range of National Broadband Network (NBN) services.