People Telecom boosts M2's dealer network

M2 Telecommunications Group has boosted its national dealer numbers from sub-50 to about 200 in the past year.

The Victoria-based telco resells retail and wholesale fixed-line, mobile and data telecommunications services, tailored for small and medium sized businesses in Australia and New Zealand.

Vaughan Bowen, CEO at M2 told CRN the purchase of Commander's People Telecom in December 2008 proved to be a popular decision amongst resellers.

"When we brought the business into our fold about we added 50 national dealers to our books," he said.

"M2 already had sub-50 dealers selling our telecoms and Southern Cross products.

"In the past year we've managed to add another 70-80 dealers onto the People Telecom books by telling resellers that the product was back in market. This proved to be the shot in the arm our channel managers needed."

Bowen said its purchase of Commander SMB, in June this year, helped bring 70 integrators to M2's books.

"The integrators are split between 30 dealers and 40 third party franchise businesses," he said.

"Of those franchises we cancelled between three-four contracts.

"We found that some territories for franchises needed to be expanded, while others were shrunk because there were a number of franchises in the same area."

Vaughan said M2's dealers, agencies and resellers were core to all parts of its business, with the exception of its wholesale business.

"Our dealers have one-on-one relationships with customers," he said.

"However our wholesale business is direct because it's niche."

In a recent statement to the ASX, the telco said its financial results for the full year ended 30 June 2009, showed a net profit after tax of $7.5 million, up 45 percent on the previous year.

M2's revenues were also up by 86 percent on the previous year, to, $202.7 million.

It also recorded an earnings before interest, tax, depreciation and amortisation of $13.3 million (up 46 percent on the previous year).