Australian wholesale telecommunications and cloud services provider Inabox Group has signed a AU$3.6 million contract with Total Telecoms Group in a minimum three-year deal that will see 3,000 customers' public switched telephone network (PSTN) services migrate over to Inabox.
Total Telecoms customers will fall under Inabox's wholesale aggregation solution in a deal that includes the facility to on-sell Telstra wholesale 3G services to these customers in the future, and give them access to billing, provisioning, and CRM systems, along with account management support.
"Total Telecoms' decision to move to Inabox demonstrates we are flexible enough to accommodate the specific requirements from retail service providers in the market regardless of size," Inabox managing director and CEO Damian Kay said.
"We have been very aggressive in the wholesale space, and it is starting to pay off."
In May this year, ASX-listed Inabox announced the signing of AU$4.25 million worth of customer contracts. Under the contracts, Inabox will be responsible for migrating more than 3,000 end-user customers to Inabox's telecommunications platform.
Additionally, Inabox has also recently signed a deal to migrate another 2,000 PSTN lines with an estimated value of $2.4 million over three years with an undisclosed company.
Late last year, Inabox acquired rival telecommunications company Anittel for a combination of Inabox shares, AU$500,000 in cash, and AU$1.5 million in deferred cash, for a total value of AU$9.88 million, in November last year.
As part of the deal, Inabox inherited Anittel's telecommunications AU$7 million managed voice services contract with the Tasmanian government. The deal can be renewed for three years up to three times, and could ultimately be worth up to AU$45 million for Inabox.
In July last year, Inabox also purchased Queensland-based cloud and voice-over-IP provider Neural Networks Data Services in a deal worth AU$350,000.
According to the company, these acquisitions saw it record a 21.1 percent drop in its half-yearly profit after tax to AU$371,843, from AU$741,344 in the same period last year.
Inabox told investors that its half-yearly earnings were impacted by non-recurring costs related to its recent acquisitions. Shortly after posting its results, the company announced that it was making a number of roles across its business redundant as it accelerated its restructuring plan.