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FoneWorx inks deals

The group agrees to act as a dealer for Telkom Mobile.

Staff Writer
By Staff Writer, ITWeb
Johannesburg, 28 Aug 2013

FoneWorx has extended its service provider agreement with Telkom, inking a deal to act as a dealer for Telkom Mobile.

It has also been named a preferred bidder as a wireless application service provider for the South African Broadcasting Corporation (SABC).

The listed company has been appointed a dealer by Telkom Mobile for three years from Sunday to "procure customers" for mobile handsets, data cards, recharge vouchers, connection packs, mobile accessories and value-added services.

"This will add tremendous value to the company's mobile handset strategy," it says.

Telkom Mobile has around 1.5 million subscribers.

In addition, FoneWorx's deal with Telkom, which allows it to operate its premium-rated Fax2Email, had been extended for five years from next month, it says in a statement. The deal came up for its third renewal at the end of March.

The solution falls under FoneWorx's BizWorx unit, which provides a range of cloud-based services for small, medium and micro enterprises, larger corporates and individuals. Its services include Fax2Email, Email2Fax, auto receptionist, desktop- and mobile-based bulk SMS applications, and custom-designed services.

Fax2Email had more than 300 000 users at the end of December. FoneWorx says the new deal with Telkom will grow this base and add "value-added features to the product".

FoneWorx has also been chosen by the SABC as one of the preferred bidders to provide mobile value-added services for three years. "This will enable FoneWorx to not only continue to provide value-added services to the SABC, which it has done successfully over the last 10 years, but to also increase its footprint."

In the six months to December, FoneWorx turned over R47.9 million, a 9% decline on the previous period. Pre-tax profit was up 7% to R17.2 million.

A previous bid to merge FoneWorx with the Kirsh family's Value+ Nettwork to create a R478 million company unravelled this year after both parties called it quits. The family instead sold its stake to Caxton, and FoneWorx and Caxton will work together to develop a digital strategy.

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