Menu
Cellnet to take hit after Telecom contract ends

Cellnet to take hit after Telecom contract ends

Cellnet's annual revenues could shrink by AUD$148 million from October following the termination of its distribution and logistics agreement with Telecom New Zealand.

According to a statement posted by the ASX-listed distributor, Telecom NZ has extended its contract with Cellnet until September 30, at which time the two will part company. The deal is part of a transitional arrangement until the telco's WCDMA/GSM network rolls out in November.

The decision is expected to decrease Cellnet's revenues by AUD$148 million from October, or about AUD$1.25m in annual net profit.

"Cellnet is continuing to discuss and finalise these transitional arrangements and options available beyond this transitional phase," the statement read. "These discussions and arrangements are expected to be finalised within the next few weeks and as matters are completed further information will be released."

Cellnet and Telecom New Zealand signed an exclusive distribution contract covering mobile phones and accessories in April 2002 after working together since 1994. At the time, managing director, Stephen Harrison, said Telecom New Zealand was the distributor's single largest customer and that the deal would substantially increase its presence in the New Zealand market.

Cellnet reported revenues of $528.2 million in its full-year report to June 30 last year.


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags cellnet

Featured

Slideshows

Meet the leading customer-centric Microsoft channel partners

Meet the leading customer-centric Microsoft channel partners

Microsoft honoured leading partners across the channel following a year of customer innovation and market growth in New Zealand. The 2018 Microsoft Partner Awards recognised excellence within the context of the end-user, spanning a host of emerging and established providers.

Meet the leading customer-centric Microsoft channel partners
Reseller News launches new-look Awards at 2018 Judges’ Lunch

Reseller News launches new-look Awards at 2018 Judges’ Lunch

Introducing the Reseller News Innovation Awards, launched to the channel at the 2018 Judges’ Lunch in Auckland. With more than 70 judges now part of the voting panel, the new-look awards will reflect the changing dynamics of the channel, recognising excellence across customer value and innovation - spanning start-ups, partners, distributors and vendors.

Reseller News launches new-look Awards at 2018 Judges’ Lunch
Show Comments