Telechoice extends retail partnership with Optus another five years

Analyst says mobile market slowing

TeleChoice announced today that its retail partnership with Optus has been extended for another five years.

TeleChoice CEO Ehab Abdou said the renewed deal will allow store growth to continue across Australia, ensuring consumers have both choice and great deal options when it comes to mobile phones.

Under the terms of the agreement, TeleChoice will continue to sell Optus packages exclusively to its customers.

Optus consumer sales director, Mark Brunton, said the telco was keen to maintain its established relationship with TeleChoice.

"Our partnership with TeleChoice has been a prosperous one and we hope that the relationship will continue to yield the results that have been delivered since it began in 2001," Brunton said.

Underpinning TeleChoice's agreement with Optus is the premium dealer's aggressive expansion plans.

Since its beginnings in 1995, TeleChoice has grown to 120 outlets nationwide and plans to grow to more than 200 stores within the next two years.

Telecommunications analyst, Paul Budde, said mobile subscriber growth will begin to slow down in 2008 compared to 2007.

Budde said Optus is starting to feel the pinch of a mobile market that has almost reached saturation point with local access revenue declining.

"Mobile subscriber growth reached seven per cent in 2007 and we predict that growth will subside to four per cent in 2008 and reduce further to only two per cent in 2010," he said.

Also, as broadband access becomes near universal, Budde said there will be further commoditisation and consolidation in the telecoms market.

He said Internet access revenues (dial-up and broadband) showed very strong growth in 2006 and 2007 driven by strong uptake of broadband.

Budde said the revenue growth rate for 2006 was 27 per cent compared with 33 per cent in 2007.

"Strong growth is expected to continue moving into 2008, although I suspect the market probably peaked in 2007," he added.

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