Wholesale overtakes franchising for Telcoinabox in reseller trend shift

Telecommunications wholesaler and franchisor, Telcoinabox announced today that wholesale is generating more business for the group than franchising.

By year end wholesale will account for 70 percent of the entire company with annualised revenues of $40 million.

Telcoinabox CEO Damian Kay says that the volume originates from the reseller market and that there is a clear shift away from sourcing telecommunications services from larger carriers.

“Resellers are looking for the whole end-to-end package. They’re attracted to the idea of going to a ‘wholesale supermarket’ where they can purchase the infrastructure, the fee billing platforms and a relationship all in the one place from a single provider.”

Since the company decided to restructure the business earlier this year and split the management between wholesale and franchising, Kay says the business has had a quick succession of wins beating the company’s targets.

“Although wholesale has superseded our franchising arm in terms of financial growth, we are not ignoring franchising. We are thrilled how steadily it is expanding despite the financial global pressures. We have in excess of 36 service providers in the pipeline.”

Kay also attributes the company’ success to its revamped business development management model.

“Our customers don’t want to deal with just a product supplier any more, so we added another layer to our account management, which we call ‘profitable partnerships’. We act as the coach and advisers helping them solve spot-business problems and expand their own organisations. Customers have really taken to this consulting approach - It’s clear, if they’re profitable then so are we.”

The company has signed some significant resellers in Australia and New Zealand in the past 6-months and there are a number of negotiations underway which will be announced through the course of the year.

With the company well ahead of its targets and guided by a superior management team Kay plans to move to the UK early next year to guide the expansion in the UK. Offices opened earlier this year to service one of its largest global customers.

Telcoinabox has spent the last 12 months expanding and upgrading its infrastructure to deliver a robust one-stop-shop model with an all-in-one billing, provisioning and CRM system.

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For information, contact Andreina Garofali on 0410 434 227.

For comment, contact Damian Kay on 02 8248 9002 or 0413 888 655

About Telcoinabox

Telcoinabox is a telecommunications wholesaler which creates telephony products that are
distributed through its wide franchisee and service provider network nationally. Telcoinabox is the
only telecommunications franchise system and one of the top 10 telecommunications resellers in
Australia. Telcoinabox has over 100 service providers which are individually branded, owned and
operated. Franchisees are located in NSW, QLD, VIC, SA NT, WA and Tasmania. Telcoinabox
was recently named the 7th Fastest growing company in Australia and Australia’s fastest growing
Franchise according to BRW.

www.telcoinabox.com.au