Cellnet adds $20m Samsung handset deal

Queensland distributor Cellnet Group has won a national distribution contract for Samsung mobile phone handsets that could be worth $20 million in the first year.

The deal follows hard on the heels of Cellnet's master distributorship in Samsung mobile phone accessories and an exclusive contract to provide Samsung mobile entertainment content. It took effect 1 September.

Stephen Harrison, managing director at Cellnet, said the contract would help set the Brisbane company apart from its competitors, providing a more complete offering.

Bundling would be a big focus, he said.

"Cellnet will distribute Samsung's mobile phones with the added feature of mobile entertainment content, such as ringtones, backgrounds, picture messages and games," he said.

Samsung "Fun Club" entertainment content would be provided via Cellnet's entertainment division Mercury Mobility, he said.

"Samsung is number three globally," Harrison added.

Josh Delgado, general manager at Samsung's telecommunications division, said the vendor was attracted by Cellnet's "state of the art" distribution facilities.

"Cellnet has the infrastructure, distribution expertise and service levels to meet our needs," Delgado said.

Cellnet reported an after tax profit of $9.1 million on revenue of $447.1 million for the 2003-04 financial year.