E-Phone Inks International Agreement with Net-Tel
EMBARGOED FOR RELEASE AT 11:00 AM, THURSDAY 23/11/00
E-Phone Inks International Agreement with Net-Tel
E-Phone Sells Phone Card Distribution Business; Acquires Ongoing Recharge Business and Internet Terminal Outlets Throughout Asia
Auckland, November 23, 2000 –
Public internet access terminal management and electronic
payment handling company E-Phone Limited (NZSX: EPH) today
announced an agreement with communications company Net-Tel
Communications Ltd that will enable E-Phone to channel its
resources to its international AirCA$H products,
licensed exclusively from airTIME Technologies Inc., and its
in-house developed PATLOC public Internet access terminal
management business.
Under the agreement Net-Tel will
acquire E-Phone’s nationwide retail phone card distribution
business, including the servicing of its 1,500 retail
outlets nationwide, its distribution and permanent PIN
customers, and will continue to operate both the Net-Tel and
the E-Phone brands. In return, E-Phone will receive cash and
retain the card recharge business, adding to it the ongoing
revenues associated with the recharge of both the E-Phone
and Net-Tel phone cards using the soon to be released
AirCA$H system. It is expected that E-Phone Ltd will
announce a name change in due course in line with the
E-Phone brand remaining with the telephony business.
As
part of the agreement the two companies have also formed an
alliance to channel international opportunities for
E-Phone’s products. Under the alliance Net-Tel will provide
distribution channels for E-Phone’s AirCA$H and PATLOC
products in Malaysia and Singapore, where Net-Tel holds
government licenses and has successful prepaid phone card
and toll service networks.
“This will streamline retail
channels for the New Zealand market’s leading phone card
brands, reducing the high cost of servicing retailers and
improving profitability for both organisations,” says
E-Phone CEO, Bob Barraket.
“Moreover, in addition to
reducing costs, because E-Phone retains the ongoing AirCA$H
recharge business we expect this to be cashflow positive and
to free up resources we need to move forward on
opportunities in Asia Pacific.”
Net-Tel’s Chief
Executive Officer Sherman Ng says the pre-pay industry has
experienced phenomenal growth in the last ten years and is
now a multi-billion industry worldwide.
“Net-Tel is now
New Zealand’s largest prepaid fixed line telephony and
prepaid internet provider and in addition, our international
channels will open up the Malaysian and Singaporean markets
where the combination of AirCA$H recharge capabilities and
PATLOC terminals will allow us to service the growing demand
for convenience-style Internet access,” says Mr Ng.
Both
Mr.Barraket and Mr.Ng see the association as a great
opportunity to capitalize on the strengths and experience of
each group. “The E-Phone PATLOC Internet terminal software
and the AirCA$H products have major and immediate
applications in the Asian markets and the alliance enables
both companies to accelerate their growth in these markets
using the distribution channels, partnerships and alliances
already in place.”
E-Phone’s AirCA$H products enable
customers to initiate or recharge pre-pay cards at point of
sale terminals. Customers key in the amount they wish to buy
or credit to a new or existing card or account, paying
either in cash or by debiting their bank account through
EFTPOS. That value is recorded on to their pre-pay account
and is available for immediate use.
E-Phone’s PATLOC
terminal management system provides pre-paid access to
Internet terminals in public environments internationally,
managed from Network Operations Centres in Auckland and
Sydney via proprietary access management
software running
multi-currency translation, PIN generation, service
accounting, electronic payment handling and ‘impulse-buy’
micro-transaction processing.
E-Phone recently signed
agreements with Advantage Group and Insight Data to install
the AirCA$H software on EFTPOS terminals and to develop,
market and operate electronic payment handling and services
for the fast growing pre-pay phone industry.
ends
About E-Phone
E-Phone was incorporated in
August 1998 by its major shareholder Bob Barraket. The
objective of the business is to successfully develop and
operate a networked and electronically managed system of
public access computer terminals and to maximise the
utilisation of these terminals by value added
services.
E-Phone believes that significant synergies and
competitive advantages are achieved with the establishment
of a branded international network of Internet terminals.
The network will provide the potential for high margin
revenue generation, as well as incremental value added
services such as transaction revenues. The alliances with
Advantage and Insight Data in the EFTPOS market with AirCA$H
adds another transaction revenue service to the E-Phone
product set.
About Net-Tel
Net-Tel commenced business
in New Zealand in 1998 and now provides a variety of
value-added communication products and services.
A wholly
New Zealand owned entity, and as part of an international
alliance, the Net-Tel Group is in the process of
establishing a global network of enhanced services with
offices already operational in New Zealand, Singapore and
Malaysia.
By bringing complete, integrated solutions
within reach of a number of niche markets Net-Tel is in a
strong position to market and sell value-added technology
products and services on a national and an international
basis.
Net-Tel has strong alliances with major
international carriers, network providers and local partners
that collectively enable Net-Tel to provide diverse, high
quality and user friendly products and services.
Apart
from its operation in New Zealand and established alliances
in Singapore and Malaysia, Net-Tel has holdings in
wholly-owned New Zealand wholesale internet provider MoreNet
Ltd and digital business solutions provider enovater
Ltd.