Freshtel heads into mobile phone market

ASX-listed ISP Freshtel Holdings has signed a ‘Letter Of Intent’ to enter into a strategic partnership with Effortel, a European Mobile Virtual Network Enabler (MVNE).

Effortel provides the business and backend support to allow resellers to establish mobile phone services re-branded as their own. It has already done this with European retailer, Carrefour.

The companies have signed a ‘Letter Of Intent’ allowing the parties to commence business planning for the converged mobile service.

The agreement paves the way to commence discussions for the provision of both the Freshtel whitelabel and combined Freshtel and Effortel converged solutions to Carrefour, the world’s second largest retailer and the largest retailer in Europe.

Peter Warner, acting CEO of Freshtel said under the agreement Effortel and Freshtel plan to establish an alliance agreement to offer both the Freshtel whitelabel service and a collectively managed converged mobile service, which will allow customers to make calls over the internet using their mobile phone. This service will be extended to their respective partners.

“This represents a significant step forward, and one that we have been able to accelerate now that our founder, Michael Carew is focused on business development,” he said.

Effortel’s business solution and technical platform enables leading retailers to provide a mobile telecommunications service under their own brand, and become what is known as a mobile virtual network operator (MVNO).

Effortel’s largest customer is Carrefour, for whom they launched the successful Carrefour Belgium mobile service which has now also been adopted by Carrefour Italy.

“The partnership will have benefit for both parties; Effortel provides a strong foothold into the European market and our leading edge technology will assist Effortel and their clients to remain on the cutting edge of mobile solutions,” said Warner

Freshtel and Effortel will immediately begin the marketing analysis and business plan for the alliance, he said.