Telecommunications reseller, Telcoinabox, has signed a $16 million deal with Telstra Wholesale to roll-out high-end ADSL2+ broadband to its business customers nationally.
Telcoinabox managing director, Damian Kay, said the deal meant it could now break away from a residential grade ADSL offering.
“We looked at other carriers like AAPT and Optus, but Telstra’s coverage and quality gave us the best solution,” he said. “It will allow us to get out of the market that competes with Dodo and TPG and get into a SME grade offering.”
Kay estimated up to 90 per cent of revenues from its service providers came from the SME space.
Telcoinabox has been a Telstra partner for more than five years and already resells its fixed wire services and 2G mobile network.
The combined Telstra deals have the potential to generate up to $100 million in landline, mobile and data business for Telcoinabox throughout the next three years.
“We wanted to focus on providing SME grade products to users and in turn give ourselves and our service providers a fair margin, which we couldn’t do offering a residential grade ADSL product,” Kay said.
Telecoinabox will look at launching the ADSL2+ services within the next two months with training also provided to its 110 service providers.
“We’re already fully integrated with Telstra gateways and so turning ADSL2+ on is easy,” he said. “Our franchise service providers are still a significant part, but most of our business comes from our wholesale channel.”