Netcomm and Quadtel make DSL ties

Looking to boost its DSL modem sales, customer premises equipment manufacturer Netcomm has found an unlikely channel to market, in the form of broadband services provider Quadtel.

The two companies have formed an alliance in which Quadtel will in effect become Netcomm's distributor, reselling the vendor's hardware both locally and internationally, while Netcomm in turn will leverage Quadtel's broadband offerings when it comes to implementing its planned DSL rollout in the not-too-distant future.

"The alliance is good for Netcomm because it gives us a new channel to market in Australia and a new channel to market overseas," David Stewart, Netcomm's managing director, said.

Although it is difficult to project overall revenues in light of what the country's major telcos are planning, Stewart claims Netcomm's hardware sales are set to significantly increase as a result of the alliance.

"We would hope to get up to 10,000 DSL modems per month in the next six months, and that could be a conservative estimate," he said.

Initially app- roached by Quadtel, Stewart is looking forward to bolstering his company's modem offerings with Netcomm's planned DSL network rollout which is set to target the second tier carrier market.

Stewart is confident that while the DSL network will not be able to compete against the likes of Telstra and Optus, Netcomm will be able to make significant inroads to the SME market through the major suburban exchanges.

Although the real fruits of this alliance are dependent on telcos rolling out the DSL infrastructure, both companies are optimistic about the possibilities.

Exploding market

"Internationally and domestically, the broadband DSL market is set to explode in the coming 12 to 18 months on the back of technological innovations by telecommunications carriers such as Telstra," said David Ramsay, CEO of Quadtel.

And according to a statement released by the companies, this alliance is geared so that they too will get a piece of that action.

Providing Australia's major telcos continue with plans to lay the infrastructure to enable significant DSL uptake, Stewart believes Netcomm will see its revenue change, as it makes a gradual transition from its analog Internet access products towards DSL modems.

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