Reseller News

GDC looks beyond Telecom

VOICE and data company GDC has taken the first step in regaining some of the nearly $40 million it stands to lose when Telecom starts cutting it from field service work this year.

Last week, GDC announced that it had signed a “heads of agreement” for sub-­contracts with Alstom — one of two companies retained by Telecom to carry out over 30 network patch contracts around the country. Downer was the other successful party, while Cable Talk suffered the same fate as GDC.

Telecom is phasing out its seven contracts with GDC — worth around $40 million or around 70% of GDC’s annual revenue — between August this year and April next.

The GDC-Alstom agreement is for three years to 2008.

“It picks up where our current [Telecom] contract ends,” GDC managing director Geoff Lawrie says.

Lawrie would not give a date for the agreement to become contract. GDC has not ruled out doing similar deals with Downer.

The loss of Telecom revenue should have little effect on staff numbers in GDC’s contracting division because the Alstom agreement requires a similar workforce, Lawrie says.