restructure started at tee

Tele-IP divests Cabling Division
The Directors report dated 28th February 2007, published as part of the Half Yearly
Report to 31st December 2006, explained that following the disappointing results in the
first half, the Directors were looking at a further restructuring of the company’s
activities.
As a result of those reviews, Tele-IP has decided to divest its Cabling and Installation
Division effective 31st March 2007.
Tele-IP will continue to offer all of its current services, but in the future, the cabling and
installation delivery will be sub-contracted to those companies that have the best
technical skills suited to the job and relevant customer premises knowledge.
Existing and future customer maintenance and service contracts will continue to be held
by Tele-IP and all service levels will be agreed to by the sub-contractors prior to jobs
being outsourced, ensuring that the customer will receive the best possible service at
the most competitive price.
Tele-IP understands that a new company may be established by a number of those
employees terminating at the end of March, and logically, that organization would be well
positioned to carry out a substantial amount of that work for Tele-IP.
As a consequence of the restructuring, Tele-IP will be able to reduce its wages and a
substantial quantity of its fixed overhead expenses. The higher cost of outsourcing the
labour component of the service delivery will reduce our direct margin on each job,
however, the above expense reduction will result in an improved overall trading position
going forward.
About Tele-IP Limited
Tele-IP is an Australian company focused on the development and sale of products and
services to the telecommunications markets in Australia and overseas through Beam
Communications. Tele-IP’s network services division and PBX reseller business, through
its base of over 2,500 customers, is particularly well positioned in the Voice over IP
market through its market-leading product portfolio