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ASX ANNOUNCEMENT
M2 TELECOMMUNICATIONS GROUP LIMITED (ASX: MTU)
M2’S MOBILE WHOLESALE BUSINESS OFF TO A FLYING START WITH DODO
Melbourne, September 25 2006. Diversified telecommunications services provider M2
Telecommunications Group Limited (ASX: MTU) has made a strong start to its new Optus
mobile wholesaling business by finalising commercial agreements with Dodo Australia and
several other wholesale customers. Dodo Australia is Australia’s fifth largest Internet service
provider (ISP) with more than 250,000 customers.
M2’s wholesale business, operated through its wholly owned subsidiary, Wholesale
Telecommunications Services Pty Ltd (WTS), was launched just 3 months ago. This followed
the joint M2/Optus announcement on May 30 this year detailing M2’s appointment as
wholesale aggregator of Optus mobile services. The agreement enables other
telecommunications companies, ISPs and aspiring mobile service providers to gain wholesale
access to the Optus mobile network via WTS.
Dodo Managing Director Larry Kestleman said; "We identified considerable value in the
Optus mobile wholesale offering provided to us by M2, in particular for our offerings to the small
and medium enterprise market, which is an increasingly important customer segment for
Dodo."
In addition to Dodo, M2 has secured three additional mobile wholesale agreements in recent
weeks, including telecommunications resellers Telecom One, Smartcharge Australia and EDirect.
At least four more wholesale agreements are scheduled to be finalised during the next
month.
Vaughan Bowen, M2’s Chief Executive Officer said of these initial successes for WTS; “We
are very pleased with both the strong level of interest shown toward our Optus mobile
wholesale offerings and the efficiency by which the many operational ingredients have been set
in place to enable our new wholesale customers to get up and running so early on.”
Bowen continued “In the ten or so weeks since WTS began we have fielded more than 50
enquires from existing telco's and ISP’s as well as from established dealers of mobile services
keen to establish their own mobile brands and differentiated plans. This has exceeded even
our most optimistic expectations and shows the strong demand which exists in the industry for
a competitive, simple to implement wholesale proposition using the Optus mobile network.”
“Most importantly, this strong response to our WTS offering has translated into solid and
growing volumes of new connections onto the Optus mobile network. As of now, the net
additional connections being generated from our wholesale customer base is into the
thousands per month, already outnumbering our established M2 Mobile retail business. As the
momentum builds amongst our present and soon to be added wholesale customers over the
coming months, we expect a marked increase in connection volumes, providing we keep
delivering the required operational support to our growing base of wholesale partners” said
Bowen.
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M2 Telecommunications Group Limited, listed on the ASX almost 2 years ago, is one of the few
network independent telco’s that has consistently grown both its revenue and bottom line
profits during a challenging period for the telecoms industry. M2 has returned high yield
dividends to its shareholders for the last four consecutive half years and recently announced
record revenues and profit for the year to June 30 2006.
M2 presently trades on an earnings multiple of approximately nine times earnings, with a
dividend yield of around 8.5%, fully franked. M2’s shares closed at 32c on Friday.
ENDS
About M2:
M2 Telecommunications Group Limited (ASX: MTU) is a network independent provider of fixed line, mobile
and data telecommunications services Australia wide. M2 offers a suite of unique bundled
telecommunications services and value added offerings targeted principally at the small enterprise market,
which are distributed through an exclusive national network of sales dealerships and agencies. M2 recently
established a wholesale business via its Wholesale Telecommunications Services (WTS) subsidiary,
following its appointment as the Optus endorsed aggregator/enabler of Optus mobile services to other
telecommunications service providers.
The company has demonstrated strong growth in both revenue and profit year-on-year for each of the last 5
years and was named by BRW as one of Australia’s fastest growing companies in 2003, 2004 and 2005 and
on the Deloitte Technology Fast 50 in 2004 and again in 2005. M2’s balance sheet is free of debt and boasts
sizable cash reserves. M2 has an established dividend policy, with high yield franked dividends being paid
over the last 2 years. For further information please visit: www.m2.com.au
Contacts:
Monsoon Communications
Rudi Michelson
Tel: (03) 9620 3333
M2 Telecommunications
Vaughan Bowen – Managing Director / CEO
Tel: (03) 9524 7555
or
Darryl Inns – Company Secretary
Tel: (03) 9524 7520