Telecom New Zealand will use Zuora’s subscription e-commerce platform to roll out it “no frills” Big Pipe broadband service.
Zuora will provide Big Pipe, one of Telecom New Zealand’s first Digital Ventures’ incubator businesses, with automated billing and a scalable platform to support growth and flexibility in pricing and packaging, collection and accounting of recurring revenue.
Telecom Digital Ventures' chief technology officer, Thomas Salmen, said no-frills broadband was one of the fastest growing segments in New Zealand.
“And Big Pipe is our anchor business for Zuora,” he said.
“We knew we needed a platform that was agile, that could automate our back-end processes, and be up and running quickly in order to fast track market acceleration for the Big Pipe business."
“Legacy platforms are simply not agile enough to support fast-growing businesses which require rapid deployment and seamless billing scalability.
“The solution took just 45 days to deploy and integrates with our internal CRM solution.”
Salmen said Digital Ventures’ mission was to go after segments of the market that big telecoms would typically avoid.
“The team started at about six and now we are up to about 150,” he said.
“The best way of thinking about us is that we are a corporate accelerator.
“We don’t operate these businesses ourselves. My role is to build on a core set of capabilities which enables these ventures to go and execute.”
There are eight businesses in the portfolio.
Big Pipe uses Zuora’s product catalogue, packaging and pricing capability to initially offer three different levels of consumer broadband Internet services to its customers all of which offer unlimited data usage. As soon as a consumer clicks on their preferred plan, the platform takes over, gathering contact and billing information from the consumer.
On completion, customer subscription information is passed to Big Pipe staff for back end processing.
The first invoice is automatically generated by Zuora as soon as the customer's service is up and running.
The subscription business platform allows Big Pipe to measure and review metrics critical to businesses with recurring revenue business models.
It also provides insight providing up-to-the minute information on customer growth, revenue, collection, churn and financial reporting.
Zuora vice president A/NZ Greg Cullen said the shift to the subscription economy was opening up all sorts of growth opportunities for network carriers worldwide.
“At it’s core, Zuora is focused on enabling companies to transform their businesses,” he said.
“In fact, some of the most highly respected telcos in the world are using Zuora to support innovation,” he said.
“Telecom New Zealand is no different and exemplifies the possibilities of today’s subscription economy in driving mass business transformation.”