Auckland, New Zealand: January 29 2002 – CommSoft Group Limited today announced it has joined with UK telecoms and network solutions company Techtel Group Ltd to form CommSoft UK Ltd, a jointly-owned company that will manage the distribution, sales and support of CommSoft products in the UK and Ireland. CommSoft Group expects these new distribution arrangements to yield annual cost savings of over $A3m while at the same time boosting sales in the territory.
“What this means to CommSoft is that we will receive attractive UK sales revenues without incurring the considerable exposure of having to fund and manage our own channel,” says CommSoft Managing Director Mark Lunt. “This new arrangement eliminates the high cost of selling to the UK market, while maintaining our focus on those markets and achieving healthy returns.”
Techtel, led by Managing Director Chris Steele, will manage the new entity, which has a three-year exclusive contract to sell CommSoft products in the UK and Ireland. Mark Lunt will be appointed to the Board of the Techtel Group. The contract includes performance targets and revenues will be split equally between CommSoft Group and the Techtel Group.
The new company will absorb 10 of CommSoft Group’s 14 UK-based staff, including sales, support and helpdesk personnel. CommSoft’s UK and European customers will not experience any interruption to service and support, as they will continue to deal with the same CommSoft personnel.
Chris Steele comments: “This is the next stage of planned growth for Techtel. As a telecoms industry specialist we’ve monitored CommSoft as it has created a solid foothold in the competitive UK market. We think the forex education products are superb and expect to achieve excellent sales for CallMaster, NetMaster, CellMaster and Brains in the UK and Ireland.”
”We also believe a recurring revenue model offers huge benefits to customers and suppliers alike,” Chris Steele continues. “Customers are keen to ensure they receive a swift return on communications and cost management software. As well as offering outright purchase options we plan to introduce a software rental model and believe that customers will find this compelling.”
CommSoft UK will be investing heavily in increased marketing and sales, and in further strengthening customer and channel support systems and processes.