People Telecom and Telstra strike a deal for resale of GSM services (Australia)
People Telecom has struck a deal with Telstra for the resale of mobile GSM services, in order to establish itself as a network-neutral telco.
People Telecom is planning to expand it’s mobile phone business and resell mobile services from all major carriers in an effort to boost margins after struggling to return an operating profit in its latest financial results.
Our new arrangements with Telstra wholesale, combined with improved internal efficiencies, are already underpinning improved operating margins for the People Telecom business,†says People Telecom chief executive officer John Stanton.
He also added that the new deal will help acceletate the telco’s move to operate as a multi-network MVNO, enabling it to offer services on all the major mobile networks in Australia.
The agreement with Telstra will significantly expand the scope and flexibility of our current mobile offerings,†Mr Stanton said.
The following GSm agreement is an addition to a $200 million network services contract that People Telecom had signed with Telstra’s wholesale division in February’08.
The new Telstra-supplied People Telecom mobile plans launch is due this week.
