Telcoinabox changes business model

The reseller has changed its business model from a franchise business to a wholesale business.

In an interview with CRN, Damian Kay, CEO at Telcoinabox, said the change was in response to a dramatic reseller trend shift to supermarket wholesaling.

“We realised the wholesale market in Australia was being under serviced and there was an opportunity to have a point of difference,” he said.

“We have used our experience in franchising where you are very involved in their business and adapted it for the wholesale market.”

According to Kay, this means that it will become a “one stop shop” so that a potential wholesale customer can choose from Telcoinabox what they need to make their business more efficient.

He claimed it wasn’t just about providing network access or just a billing feed for minutes, it meant giving customers a full suite of products, services and support to enable them to grow while providing them a reliable support framework.

“Wholesale customers have current businesses that they bring across so our ROI on the costs of migration are very short,” he said.

“The ROI on franchise is fairly long as we take them from non Telco experts to Telco experts over time. This is expensive and time consuming.”

Kay said the current wholesale market consists of current resellers, ISP’s, telco agents/dealers and other industry players that are looking to simplify their business.

He claimed there was no doubt that local resellers aren’t getting the account management, systems and attention they deserve.

“We are the first the address this and it’s paying dividends,” said Kay.

According to Kay, by year end wholesale will account for 70 percent of the entire company with “annualised revenues of around $40 million”.
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