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Uecomm Acquires 19.9% Stake in People Telecom
Uecomm Limited today announced it had reached agreement to acquire a 19.9% interest in the Australian telecommunications service provider, people telecom. people telecom provides voice, data and wireless products and is focussed on servicing residential customers as well as small to medium enterprises (SMEs).
Through its interest in the company, Uecomm will be the wholesale services provider for people telecom, and will be invited to appoint one director to the people telecom Board. The investment by Uecomm will consist of approximately $10 million cash and services totalling approximately $4.3 million.
Uecomm will utilise the people telecom sales channel to market to residential and SMEs, allowing the Company to focus its attention on its core business of provision of fibre optic network services to the large corporate and carrier markets. The association will also increase Uecomm’s ability to offer bundled services to customers.
In commenting on the agreement to acquire 19.9% of people telecom, Keith Ondarchie, Uecomm’s CEO said “that the opportunities afforded by the joining of these two organisations are significant; we provide the network and infrastructure, whilst they provide us with a greater network load factor and the access to an established and proven sales and customer management capability which will save us many thousands of dollars. We are building on each other’s strengths; the fit is strategic and complimentary.”
Uecomm joins other major shareholders in people telecom; f2, the Fairfax interactive network, and Village On-line investments, part of the Village Roadshow Corporation.
people telecom is led by an experienced Board of Directors, including Ron Walker (Chairman), Margaret Jackson (Deputy Chairman) and Ryan O’Hare and Colin Marland, co-founders of the corpTel group of companies sold to AAPT Limited in 1998. Mr Ondarchie commented that he was excited at the prospects of working with the people telecom Board in building the businesses and furthering the close relationship intended by the agreement to acquire the 19.9% stake in that company.
Since its inception in early 2000, people telecom’s client base has grown consistently, in-line with its forecasts. The company currently provides a range of domestic and international services to clients, including local, national and international fixed wire services; mobile services including WAP and content services; as well as dial-up and permanent internet connection.
