Vonex (ASX:VN8) signs agreement with CBA's telecom partner; shares gain

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Highlights

  • Vonex has signed a binding Heads of Agreement with Commonwealth Bank's telecom partner- More Telecom. 
  • The agreement has been done for a tenure of six years. 
  • Vonex shares gained on the ASX, backed by this announcement. 

The shares of Vonex Limited (ASX:VN8) were spotted trading 12.230% higher at AU$0.078 per share at 12:06 PM AEST on the ASX today (10 June). More than 830K shares of Vonex were traded so far. 

The ASX-listed telecommunication firm announced that it has signed a binding Heads of Agreement with More, the telecom partner of The Commonwealth Bank. 

The share price of Vonex has fallen over 51% on the ASX in last 12 months. On the other hand, Vonex's year-to-date share price also fell over 29% (as of 12:04 PM AEST on the ASX today, 10 June).

About Vonex's agreement with More: 

Vonex shared via an ASX release that it has struck a deal with CBA's telecom partner- More Telecom. This agreement will help Vonex to develop, operate and maintain a customised software platform for the enablement, provisioning and management of Hosted PBX services, IP telephony hardware and softphone licenses for new and existing small to medium enterprise (SME) customers of More.

Vonex's announcement reveals that this agreement coincides with More Telecom's well-publicised launch of Business NBN and Business Hosted Phone for CBA customers.  

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More will be exclusively using Vonex's platform as a wholesale provider of Hosted PBX services, phone numbers, call carriage and hardware for new and existing customers for up to six years. Till now, More Telecom has 8,800 existing Hosted PBX business services on their own network, which will be moved to Vonex's platform as a part of the agreement.

As per the deal, Vonex will earn fees associated with the design, development, and implementation of the platform. As a result, the company expects its revenue to go significantly higher from the Hosted PBX user license fees, call carriage and hardware sales.

What did the management say? 

Vonex Managing Director, Matt Fahey, said:

About More Telecom: 

More Telecom is a provider of the full suite of innovative NBN, business phone and mobile products, services and plans to customer and SME business customers. The company is based in Melbourne, with annual revenue of over AU$100 million. The company has about 125K active customers. More is also the official telecom partner of the Commonwealth Bank of Australia. 

About Vonex: 

 

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Founded in 1994, Vonex Limited is an ASX-listed telecommunication company with a market capitalisation of AU$23.17 million. The company is known for offering innovative VOIP solutions through its software development, resulting in faster service and customised solutions for its clients. Vonex also offers phone plans, internet plans and IP voice to its clients. 

Also read: Vonex (ASX:VN8) completes Voiteck Acquisition, shares soar on ASX


 


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