What’s trending the wholesale telco market


Transcription of Finance News Network Interview with Inabox Group Limited (ASX:IAB) Managing Director and CEO, Damian Kay
Lelde Smits: Hello I’m Lelde Smits for the Finance News Network and joining me from telecommunications wholesaler, Inabox Group Limited (ASX:IAB) is its Managing Director and CEO, Damian Kay. Damian welcome back to FNN.
Damian Kay: Thank you very much, pleasure to be here.
Lelde Smits: There’s been quite a lot of action in the telecommunications market on a whole range of issues. Do you view this as a challenge or opportunity for companies such as Telecoinabox?
Damian Kay: For us opportunity comes out of challenges and the collapse of one our biggest competitors, has meant that we’ve been fortunate enough to pick up a number of their customers. And so it’s definitely created a good opportunity for us and obviously, not having a competitor in the market for us, creates opportunity down the track as well.
Lelde Smits: What do these challenges mean for the end user?
Damian Kay: The end users are actually the ones that are most challenged I think, through this whole process. There was a situation where they got disruption in their services. And also I think having less competitors in the market, gives them less choice and I don’t think that’s a good thing for end users.
Lelde Smits: Where do you see the wholesale industry trending over the next five to 10 years?
Damian Kay: That’s a really good question. NBN is obviously a key part of the industry moving forward and the way that we play in that market, and I think that’s very important. I think Cloud and the rise and rise of the Cloud, particularly for SMEs as the end user; it’s a really big part of this. I think enablement is a very, very big part of this as well where you’ve got large mass market operators, looking to add telecommunications to their existing revenue streams. 
And I think you’ve also got the tightening up by carriers in the MVNO and MVNE market, or the Mobile Virtual Network Operator market is becoming more and more difficult. With the collapse of people like ispONE and due to the Kogan debacle, I think the carriers are very careful about how they supply that to enablers and retail service providers in the industry.
Lelde Smits: Why is Cloud computing going to be the next big thing for telcos?
Damian Kay: It is a big thing for telcos and it’s also a big focus for us. And the reason for that is that our revenues are derived from what the end user consumes. We do it through our retail service providers that as the end user or the SME customers, the Small to Medium Enterprise customers, are consuming things more in the Cloud. It’s important for us to be able to provide that and that’s things like remote backup, storage. And things like the normal phone system going into data centres and into the Cloud, means that we need to make sure that we are providing those products and services to our customers, to be able to provide it to the end user in order to become sustainable and grow their revenues.
Lelde Smits: Finally Damian, enablement seems to be a big part of Telcoinabox’s future growth. Can you explain the reasons for a mass market customer becoming a telco?
Damian Kay: Large mass market customers or big large organisations with big consumer customer bases are looking to add telecommunications, to their existing revenue streams. And that might include people like utility companies or large grocers. Companies like that that have got large customer bases and they want to get existing – add to their existing revenues, but also make their customers more loyal. And, they also want to have more contact with the customer, through monthly bills and stuff like that. For us, we’re able to provide them with an end to end solution that allows them to get into telco in any easy way, given that it’s not their core business.
Lelde Smits: Damian Kay, thank you for the update from Inabox Group.
Damian Kay: Thank you very much, I appreciate it.