Telcoinabox makes acquisition the focus for 2011

Media release
7 February 2011    

Telcoinabox makes acquisition the focus for 2011

• 2011 the year of innovation and reinvigoration for the business
• Three opportunities add rapid business growth potential for service providers and core business -

1.  micro-acquisition

2.  new data product releases

3. easier entry to become a service provider

Telecommunications wholesaler and franchisor, Telcoinabox, has launched into 2011 with a focus on micro-acquisition to ramp up service providers’ individual businesses.

Acquisition targets will be small to medium telecommunications companies, in particular Internet Service Providers (ISPs), experiencing sluggish business growth and margin squeeze.  

Telcoinabox CEO Paul Line says 2011 is the year of innovation and reinvigoration for the business. 

“With consolidation of ISPs accelerating we see an opportunity for our service providers to acquire players considered too small for the larger ISPs to approach.”  

Telcoinabox has created a dedicated team to work on the initiative and has employed external business brokers to facilitate service providers’ negotiations with potential takeover targets. 

Telcoinabox will also provide the financing to ensure deals get across the line efficiently.
 “Devising innovative ways to build our service providers’ businesses is important to both their wealth creation and ours. When they succeed so do we.
 Our service providers are essentially entrepreneurs so it makes sense to play the role of ‘venture capitalist’ as well as infrastructure and product provider.”

A pilot of the strategy has already started to pay dividends with the recent acquisition of Mobile Office, by Airlie Beach service provider Voice2net. A number of other acquisitions are currently under negotiation.    

Also in store for the business in 2011 is the launch of a new suite of pre-packaged ‘over-the-top’ data products.  Following the recently signed deal with Engin to provide VoIP and hosted voice services, Telcoinabox will extend its product suites to include web-hosting, remote back-up, anti-virus, VPN and net filtering services.

“Developments in data services’ convergence and commoditisation mean it’s critical we focus on the revenue and margin per connection that we can drive from additional services provided over the underlying network.  A further benefit should come from improved network efficiency and utilisation of unused capacity during off-peak periods.”

Mr Line adds that capitlising on their existing infrastructure is part and parcel of the company’s strategy of being the ‘one-stop-shop’ for their customers, with the added bonus of a one-bill solution for a diverse range of products and services.
The first wave of off-the-shelf data products will be available in the third quarter of 2011.

In addition to acquisition and new product launches, the underlying thrust of the business plan for 2011 is to ramp up the number of Telcoinabox service providers.

The company currently has 110 service providers on its books and aims to add approximately 20 by the end of the calendar year.
“Our recruitment strategy this year is to reduce the current barriers to entry. Areas we’re looking at include accreditation of our franchise model by the big four banks, vendor financing new franchisees and outbound targeting of specific niche markets, such as PABX suppliers and maintainers

“We want to sell the benefits of owning your own customer base rather than being a dealer for another telco.
“Satisfaction management is our 2011 goal. We are in effect consultants to our service providers. When service providers are well equipped to grow their businesses then it’s a win-win for everyone.”

For comment, please contact: Telcoinabox CEO Paul Line on 0409 752 582. For information, contact Andreina Garofali on 02 9130 5747 or 0410 434 227.

About Telcoinabox Telcoinabox is a telecommunications wholesaler, reseller and franchisor which packages telephony products that are distributed through its wide franchisee and service provider network nationally. Telcoinabox has over 110 service providers which are individually branded, owned and operated. Franchisees are located in NSW, QLD, VIC, SA NT, WA and Tasmania. www.telcoinabox.com.au