Telco looks to Excel for strategy

Telecommunications broker, Telco Australia, is modelling itself on US telecomms success story, Excel Communications, with the aim of gaining and retaining customers in the increasingly price sensitive Australian telecommunications market.

Excel Communications, founded in 1988 and based in Dallas, has become one the largest suppliers of telecomms services in the US by offering a range of services through a combination of distribution channels.

Siegfried Konig, managing director, Telco, said the company aims to increase customer retention by following Excel's strategy of diversifying its offerings. He estimates that Telco has 90,000 customers in Australia.

Telco currently markets services from AAPT, and One.Tel and is looking at the possibility of offering a variety of other services.

For example, Konig is negotiating with a power supplier to allow Telco's sales representatives to market electricity to clients. He also sees potential in offering customers a range of other loyalty-oriented deals, such as shopping discounts.

Telco has acquired AAPT reseller Gupta Communications and bought a 24.4 per sent stake in GPS (trading as Hamil Haven), a global positioning system technology company, and is likely to announce further acquisitions shortly.

Konig expects to increase Telco's international activity in the second half of this year, he said.

So far, Telco has founded Telco Telecommunications in Germany with the aim of profiting from deregulation in the German telecomms market.

Meanwhile, Telco expects a boost to profits in early June, with the float of GPS Konig believes Telco's involvement with GPS has the potential to boost Telco's profit this year to $1.5 million, significantly greater than its predicted profits of $930 000.

"We anticipate an extremely profitable, ongoing relationship with [GPS]," Konig said.

Telco has secured a priority allocation of GPS shares for its shareholders.