Vodafone NZ signs with Vocus for two more years

Contract renewed for international Internet capacity

Vodafone New Zealand has renewed its IP transit contract with Vocus Communications.

Under the contract, which has been renewed for 24 months “at a fixed price in line with the market”, Vocus will supply international Internet capacity to Vodafone.

Vocus estimated that the difference between the Vodafone contract in fiscal-year 2014 compared to FY 2015 is a reduction of $4.5 million in earnings before interest, taxes, depreciation, and amortization (EBITDA) for FY 2015.

“Despite the reduced contribution from Vodafone, Vocus continues to expect very strong EBITDA growth for FY15,” Vocus said.

From FY 2015, Vocus said no customer will account for more than 5 per cent of the company’s revenue.

The company announced in August 2010 that it would supply all of Vodafone NZ's international data capacity.

Earlier this month, Vocus announced that it will acquire New Zealand-based fibre provider FX Networks for $107.7 million.

Vocus Communications CEO James Spenceley said Vocus decided to acquire the company to “mirror” its success in Australia as an integrated provider of fibre, Internet and data centre services.

Adam Bender covers telco and enterprise tech issues for Computerworld and is the author of dystopian sci-fi novels We, The Watched and Divided We Fall. Follow him on Twitter: @WatchAdam

Follow Computerworld Australia on Twitter: @ComputerworldAU, or take part in the Computerworld conversation on LinkedIn: Computerworld Australia

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Tags NetworkingVodafone New ZealandVocus CommunicationstelecomtelcosIP transit

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