Vonex partners with More on telco deal for CBA business customers

Vonex ASX VN8 More CBA Commonwealth Bank business customers telecommunications
Under the deal, Vonex will earn fees associated with the design, development and implementation of the platform, along with “significant revenue” from the hosted PBX user licence fees, call carriage and hardware sales.

Telecommunications company Vonex (ASX: VN8) has partnered with local telco More to become an exclusive provider of business phone hardware and services to new and existing customers of the Commonwealth Bank (ASX: CBA).

Under the terms of the deal, operating through its wholesale arm 2SG Wholesale, Vonex will develop, operate and maintain a customised software platform to enable and manage hosted PBX services, internet protocol (IP) telephony hardware, and softphone licences for More’s small-to-medium enterprise (SME) customers.

The state-of-the-art platform will integrate with More’s billing application and ordering system through custom APIs (application programming interfaces) developed specifically for the project.

The initial term of the agreement will run until mid-2024 and More will retain the right to extend it for up to two further terms of two years each.

More ownership

Melbourne-based More (comprised of More Telecom Pty Ltd and residential brand Tangerine Telecom Pty Ltd) is part-owned by the Commonwealth Bank under a strategic deal announced in July which will see the integration of More’s NBN services with the CommBank app.

The deal will allow the bank’s customers to self-manage their internet and phone plans.

The Vonex agreement coincides with the launch of More’s business NBN and business-hosted phone for the bank’s customers.

Rapid growth

Vonex managing director Matt Fahey said the “highly-scalable” platform would assist More with its rapid growth.

“Building and delivering a new hosted PBX enablement platform for More will allow SME customers to sign up for smart, scalable and valuable telco services simply and rapidly,” he said.

“We are impressed by what we see ahead in More’s sales pipeline and look forward to a long and productive partnership.”

Platform development

Development of the platform will kick-off with a minimal viable product (MVP) phase, which Vonex will deliver in full within 36 weeks of the start of the agreement.

Vonex will then migrate more than 8,800 of More’s existing hosted PBX services to the platform within 12 months.

Vonex will also provide managed services for the platform’s ongoing hosting, operation and maintenance.

This will include the provision of a service desk contactable by More staff at agreed hours for the purpose of reporting incidents with the platform and getting help with troubleshooting.

More staff will be provided with relevant training and documentation relating to the platform’s operation and a process of scheduled maintenance will be agreed between the two parties to address updates and bug fixes.

Revenue and fees

Mr Fahey said there would be “significant ongoing recurring revenue” from the deal, generated predominantly from licencing fees, hardware and call carriage.

The company will charge a one-off fee for initial software development and an ongoing monthly fee for platform management.

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