My Net Fone spends $22.3m on global footprint

My Net Fone has revealed global ambitions with plans to spend NZ$22.4 million (A$22.3 million) to acquire the wholesale voice business of Telecom New Zealand International (TNZI).

The deal could increase My Net Fone’s revenues by up to $100 million in its 2016 financial year, and will bring a global customer base of 220 wholesale voice customers. The purchase is expected to be complete by the end of April.

Australian My Net Fone resellers also stand to benefit from being able to offer their customers better international voice rates, said My Net Fone chief executive officer Rene Sugo.

“For those resellers targeting international customers, this will give them a step up on their competition,” he said.

TNZI conducts trades of voice minutes, buying and selling traffic on global markets. The acquisition gives My Net Fone the provision of the bulk of international voice traffic to and from New Zealand, as well as a carrier grade voice network across Europe, North America, Asia and Australia and New Zealand and the Pacific. The company also gets TNZI's voice trading systems.

This network will be used by the Sydney provider as a launch pad for its hosted services on the international a market. My Net Fone will use its new network to deliver services from its iBoss and TollShield businesses, as well as a number hosting, managed SIP trunks and managed end point services.

Sugo described the deal as a “huge step up” for My Net Fone’s global services credentials, arguing it transforms the Sydney company into a “significant voice player in the global market.”

“It would have taken the company many, many years and a far greater investment to build the team, capabilities, customer base and network reach that this great deal brings us”, he said.

The deal follows a string of acquisitions by My Net Fone in recent years: Symbio Networks, Connexus, Callstream and GoTalk Wholesale. My Net Fone also bought the assets of PennyTel and the iBoss billing platform from telco provider ISPone, which went into administration in 2013. 

The growth strategy paid off, with My Net Fone reporting a 40 per cent increase in profit for the financial year ended June 2014.

This latest purchase means My Net Fone will lose its debt-free status, though Sugo assured shareholders the company plans to pay down the debt within five years.