People Telecom partner with Nextep

People Telecom has moved into the virtual network operator space through a new deal with Nextep Broadband.

People Telecom has moved into the virtual network operator space through a new deal with Nextep Broadband.

Through the deal, People Telecom gains access to around 100 DSLAMs which will allow for the provision of ADSL2+ services to its current SME/SOHO business-grade offerings.

The agreement also opens up new margin opportunities on business-class VoIP services using the 24,000MBps capabilities of the network. Nextep is a division of NEC Australia.

People Telecom CEO Ryan O’Hare said in an ASX statement that the decision to partner with Nextep came down to current market uncertainty around infrastructure investment.

“We took the view that it would be better to leverage our core competencies in the SME and SOHO markets over an established network infrastructure,” he said.

Nextep’s national network could also offer a higher grade of service and speed than that available through wholesale agreements, O’Hare said.