Inabox Group Limited (ASX:IAB) Managing Director & CEO, Damian Kay, talks about the company's new contract to roll out its white labelled enablement solution to Telstra Wholesale customers and what it means for the company.
Jessica Amir: Hi I’m Jessica Amir for the Finance News Network. Joining me from technology platform and service provider, Inabox Group Limited (ASX:IAB) is Managing Director and CEO, Damian Kay. Hi Damian, welcome back.
Damian Kay: Thanks Jessica, it’s good to be here.
Jessica Amir: First up, you’ve just announced an exciting win in the enablement channel. Just tell us about the enablement channel?
Damian Kay: The enablement channel is one of our three channels to market. And it is where we enable non-traditional entrants to enter and come and extend their brand, and become a telco. For instance, it might be a large grocery chain or something similar, wanting to extend their brand and offering telco services to their consumer base. And in summary, we provide a full service white label turn-key solution to make it easy for those large organisations, to be able to offer telco services to their customers.
Jessica Amir: Tell me about the win that you’ll be delivering to Telstra’s (ASX:TLS) wholesale customers and what it means for the Inabox Group?
Damian Kay: It means a lot for us, we went into this process with Telstra Wholesale over a year ago. And we were competing against some domestic and some international entrants and submissions. We came out winning and since then, we’ve been working through the solution design and the contract. Today, we’re able to announce that win. What we’ll really be doing is providing Telstra Wholesale and in turn their customers, their wholesale customers, basically what we’re providing in the market today. And they’ll be providing that solution as a white label solution, for their customers and in turn, those consumers in the market.
The win was really important for us, because it consolidates our position as the only enabler in the market that can provide a full service white label solution, to large consumer brands and in this case through Telstra Wholesale, in the market today. And for us, it was important that we maintained that market leading position.
Jessica Amir:Tell us a little bit more about why these non-traditional players are entering the Telco market?
Damian Kay: It’s an interesting phenomenon. We’ve seen it in the UK with Tesco, who’s now one of the largest telco and Internet providers in the country, and we’re starting to see it here. We’re seeing Coles and Woolworths (ASX:WOW) move into products such as insurance and credit cards, and finance and so forth. And telecommunications is a logical next step for these organisations. The catalyst really has been NBN and also the rise of mobile, or the access of mobile to the major carriers. In Telstra’s case, it’s the Telstra 4G network and so that’s really exciting. So what we’re starting to see is the large non-traditional entrants taking advantage of technology changes, in the industry today.
Jessica Amir: These pretty exciting announcements come on the back of what’s been a challenging time. Just tell us how it’s all going?
Damian Kay: It’s going really well. We just said recently that we’ve made the changes that we needed to make. And right now, we continue the momentum in our indirect channel, our wholesale channel and in the enablement channel, which this was a really exciting win. And we’re just really focused on driving the business forward now and returning good returns to shareholders, who have been very patient. It is a really good win and yes; it is a relief to start delivering what the company’s been promising for some time.
Jessica Amir: Damian Kay, thank you so much for the update.
Damian Kay: Thank you very much.