Technology news and Jobs arrow Telecommunications arrow Optus 3G for the people, from People
Optus 3G for the people, from People E-mail
by Stuart Corner   
Tuesday, 23 January 2007
People Telecom (ASX: PEO) is to continue as a reseller of Optus mobile services and has expanded its agreement with Optus to include 3G services.

The company has signed a $21 million agreement to continue its five year mobile services provider relationship with Optus for a further 18 months. It says that "the new agreement will also enable People Telecom to begin offering 3G mobile voice and data services during 2007."

People Telecom said it had signed the agreement following several months of negotiation with all wholesale GSM providers in Australia and that it would "enable People Telecom to deliver greater value to customers while also improving its underlying operating margins."

People Telecom CEO, John Stanton told iTWire that the $21m figure was "an extrapolation of our current spend with Optus over the life of the contract." People Telecom is a reseller of Optus Mobile, not a mobile virtual network operator. Stanton said the company had look at this option "but for various reasons we decided not to pursue it at the present time."

People Telecom also in turn wholesales the Optus service to other resellers and Stanton said the new contact with Optus should enable it to expand on that business. "Fundamentally it's better pricing but there are number of terms and conditions in the new contract that will help us."

The company grew its mobile telephone business by 16 percent to $20.2 million in 2005/06 and claims more than 15,000 mobile subscribers. Stanton, said "We see ongoing growth opportunities, particularly as mobile services form an integral part of the bundled service offerings which are highly valued by our customers, particularly in the SME sector.{moscomment}

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