Telcoinabox enters $100m deal with Telstra

Extends eight year partnership.

Telecommunications wholesaler Telcoinabox has signed a $100 million deal with Telstra Wholesale to supply fixed line services, GSM mobile and DSL services to Telcoinabox's expanding service provider network.

The contract extends an existing two year contract between the two companies for a further 15 months to March 2012.

It is expected to generate an additional $60 million in landline, mobile and data business for Telcoinabox in addition to its existing $40 million per annum business.

Telcoinabox will re-package Telstra's DSL product and offer three core speeds - 1.5Mbps, 8Mbps and 20Mbps and will upgrade most of its existing customers from lower speeds at no extra cost.

"Telstra Wholesale continues to help make business easy for us which is why we are in a position to rationalise our DSL offer while continuing to achieve excellent growth," said Paul Line, CEO of Telcoinabox.

"The cost-savings achieved are significant and our business model is built around passing these cost savings directly on to our service providers who then pass them on to their customers. This way our customers continue to have a competitive advantage in the reseller market."

Line, said that the two companies have been driving this commercial relationship for eight years since the company launched in 2002.

"From our end, we can offer our service providers a competitive advantage and as a business we can better model our revenues and margins for the next two years," he adds.