Telco In A Box seeks international expansion
09 November 2007 — Communications Day
Telco In A Box seeks international expansion Virtual telco company Telco In A Box is seeking to expand its Australian operations following a recent win, coming 7th in the recently published 'BRW Fast 100' list. Managing Director Damian Kay spoke with CommsDay, claiming that ongoing growth in the company will lead to significant changes in the coming year – including structural changes and expanding the business into the UK and New Zealand.
“We'll go live in the UK on the first of March," Kay told CommsDay. The company will begin setting up operations on December 11, and will enter the UK market with a partner which Kay claims will deliver instant revenue streams to the company. Telco in a box is currently signing carrier agreements in the UK. “The opportunity presented itself, it's a viable opportunity with a good partner," he said, adding that “Australia will still be out biggest focus."
Kay also said that Telco In A Box is “about to sign with TelstraClear and Telecom New Zealand," saying “we're close to finalizing the deal there, but the UK will take preference." He calls the New Zealand opportunity as an “easy option," saying “we'll be going over with guaranteed business." Both UK and NZ systems support will be handled at the company's base in Australia. He says the company has looked into opportunities to expand into Canada, South Africa and through Asia, but will not go further any time soon. “Australia, the UK and New Zealand will take all of our resources," he said.
Telco In A Box is currently undergoing an internal transformation, handing the responsibilities of the current directors to a senior management team. Kay claims the transition will allow the company's directors to focus on pushing growth and pursuing overseas opportunities. “We'll basically be handing over day to day responsibilities to a senior management team. They're really good people taking over," he said.
Kay says next year he will focus on acquisition opportunities, particularly on retailers who will increasingly struggle to go it alone in a polarising market. He says the company has reached a level of maturity that an acquisition strategy is now a viable option. “Acquisitions create a lot of work – you've got to make sure your organic growth is strong first."
The company may consider floating on the ASX in coming years. “We'll reconsider it in 12 months," said Kay. “It's on the backburner. We're happy being a private company... we'd want a minimum market cap of $100 million, so we'd need $8 million per annum NPAT... if you're going to go through the hassle, make it worth it," he said.
Originally published in Communications Day: [PDF 502kb]
