Strathfield renews Optus mobile dealer relationship

Stuart Corner
Monday, 23 August 2010 18:13

IT Industry - Deals

Mobile phone dealer  Strathfield Group (ASX: SRA) has entered into a new five year master dealer agreement (MDA) with Optus with an option for Optus to renew for a further five years.

"The new MDA is effective from 1 September, 2010 and in additions to normal revenue it provides Strathfield with reward for performance based on the acquisition and retention of Optus subscribers," the company said.

It added that the new agreement was significant because: "It continues the existing relationship between Strathfield and Optus and retains that source of cash flow for Strathfield; it provides a platform to expand the Connect Stores franchising strategy focused on opening Strathfield stores and kiosks in strategic shopping centres and retail precincts; it gives any potential franchisee the confidence that it can enter into a sub-dealer agreement for a minimum term of up to five years."

It added: "This new contract helps to cast Strathfield as a notable force in the retail telecommunications market with the continued expansion of Optus' dual band mobile network, particularly in regional areas where Strathfield's new focus will be centred.

The chairman of Strathfield, Vaz Hovanessian, said: 'This is a significant contract and a noteworthy achievement for Strathfield which has only recently emerged from a complete restructure of the group and together with the return to profitability released in the half year accounts it clearly signals the success of the restructure.'