Telecom NZ outsources CPE supply to Brightstar for three more years

Stuart Corner
Wednesday, 16 February 2011 14:42

IT Industry - Deals

Telecom New Zealand has signed a new three year supply chain agreement with Miami based Brightstar covering all mobile, broadband and fixed line products; just weeks after Brightstar's controversial relationship with Telstra came to an end.

The three year Brightstar contract to provide supply chain services to Telecom NZ was awarded following Telecom NZ's Vision2013 review of all outsource providers. The contract is effective from 01 January 2011 until 31 December 2013.

Brightstar said: "Brightstar NZ will continue to provide a total supply chain management and optimisation solution for Telecom, including device ranging and portfolio management, strategic sourcing, inventory management, warehousing, distribution and channel training. The new agreement also expands Brightstar's service provision to include direct fulfilment solutions for Telecom's Gen-i business unit."

Alan Gourdie, CEO Telecom Retail, said: "Brightstar has proven its unique position as a truly end-to-end supply chain solution provider that delivers enhanced product availability, reduced time to market and innovative reporting in support of Telecom's market objectives."

The Australian reported in November 2010 that Telstra would terminate its controversial Trujillo-era mobile handset supply contract with Brightstar at the end of the year and bring handset sourcing in house.

In September 2005, The Australian had drawn attention to Brightstar Corporation chief Marcelo Claure's relationship with then Telstra CEO, Sol Trujillo, saying: "Mr Trujillo is a long-time friend and business mentor of Mr Claure. Both Mr Trujillo and former Telstra chief operating officer Greg Winn were co-investors with Mr Claure in a Chinese telecoms group called Silk Road Telecommunications."

The Australian subsequently published details of Telstra's handset sourcing contract with Brightstar, claiming that Telstra would pay between two and three times industry rates for handsets in 2007. "Rival suppliers were incredulous," it said.

In November 2010 it was able to get access to Brightstar Australia financials saying: "Over the past two years, the local subsidiary of Miami-based Brightstar Corporation has pursued every legal avenue to shield its books from scrutiny. However, after losing a final Federal Court appeal in March, the company has lodged statements with the corporate regulator showing its contract with Telstra had netted it pre-tax profits in excess of 30 percent of turnover for the past two calendar years'¦It has also accumulated net assets of $101m and in April last year paid out about $55m in dividends at $18.40 per share."