Telecom NZ (ASX:TEL) has signed a $30 million agreement with telecommunications wholesaler and franchisor, Telcoinabox.
The 3-year agreement marks the first major New Zealand deal for Telcoinabox since the wholesaler opened shop in Wellington in 2009 and is projected to generate $400 million in revenue for the company.
The deal will enable Telcoinabox to wholesale mobile voice and data services on Telecom NZ's W-CDMA network and will cement its position as the first mobile virtual network aggregator of the 3G system since its conception in October 2008.
Closer to home, Telcoinabox has also recently extended its relationship with Telstra in a $100 million deal.
Telcoinabox New Zealand chief executive officer, Shannon Fisher, said the deal is a big growth opportunity for the company.
“By expanding our product portfolio combined with our support, our service provider network achieves wide network coverage and the highest Internet speeds in the country," Fisher said in a statement.
The agreement is also expected to bring good things to Telecom NZ. In a statement Telecom Wholesale general manager marketing, Nick Clark said, "By partnering with Telcoinabox we hope to broaden the availability of our W-CDMA network to more markets“.
Telecom NZ has recently been revising its revenues after a failed appeal on the NZ Commerce Commission’s 2004/05 and 2005/06 Telecommunications Service Obligation (TSO) determinations.
Editor's note: The original version of this story stated the deal was worth $400 million. This was incorrect and the numbers have been amended.