People Telecom in $200M deal with Telstra Wholesale

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People Telecom in $200M deal with Telstra Wholesale

ASX-listed, People Telecom has signed a $200 million supply agreement with Telstra Wholesale, which will underpin People Telecom’s continuing growth in national fixed wire and broadband services.

The three year agreement was signed in Sydney by People Telecom CEO, John Stanton and Telstra Wholesale Group managing director, Kate McKenzie, following a six month competitive selection.

John Stanton, chief executive officer, People Telecom told CRN that Telstra Wholesale will provide People Telecom with a range of fixed wire and broadband products. The combination will reduce operating costs and improved internal efficiencies, driving improved margins in People Telecom’s core services during the second half of 2007-08 and beyond.

“These new arrangements with Telstra Wholesale offer substantial bottom-line benefits to People Telecom and the opportunity to drive additional profitable growth in the provision of retail and wholesale telecommunications services across Australia,” he said.

Stanton said People Telecom have had an existing relationship with Telstra and spent the better part of three months negotiating the best deal for the service provider.

"What this deal means for us and our customers is an improvement to our supply costs and it gives us flexible offerings and packages. It also includes a price review mechanism to continually review the prices of packages over the lifetime of the agreement," said Stanton.

Kate McKenzie, group managing director, Telstra Wholesale said she was pleased People Telecom had chosen to continue its long-standing relationship.

“Telstra Wholesale is a full service provider able to give customers reliable and robust network solutions, end-to-end service and technical support for the products that we offer,” said McKenzie.

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