[LINK] OZ Post soon a telco

stephen at melbpc.org.au stephen at melbpc.org.au
Thu Nov 24 18:57:55 AEDT 2011

OZ Post Tipped AS New Telco In NBN Era 

By Computer Daily News | Thursday | 24/11/2011

Telecommunications industry commentators are hailing the revelation that 
Australia Post is planning to enter the telecoms industry in a major way, 
with former high-ranking and highly respected Optus executive Maha 
Krishnapillai, at the helm. 

News of the move was broken by Communications Day, which said the move 
sees Oz Post – already dabbling in e-commerce via its delivery service 
for goods ordered online – seeking to diversify further away from 
traditional postal services and into newer communications offerings.

According to Comms Day, which spoke with Krishnapillai, Oz Post's telecom 
strategy will focus on three main areas: its strength in e-commerce, 
based on the fact that many online transactions require parcels to be 
delivered; followed by a ramp-up of its financial services and banking 
portfolio – noting that through existing offerings like passport and 
licence services, Oz Post has already built up substantial expertise in 
ID verification and payment security.

Finally, it says, "Australia Post is mulling a push into broader 
communications services, with an obvious opportunity developing as the 
NBN continues to roll out. The company's massive distribution, trusted 
brand, logistics advantages and easy-to-use payment systems all present a 
compelling case for the company to play in the wider telecoms space in an 
NBN environment."

Industry observers mainly agreed. "I think it's a goer," commentator Paul 
Budde told CDN; the seer of Bucketty sees the NBN ushering a comms role 
for many larger retail outfits like Woolworths and David Jones as well as 
Oz Post.

He pointed to Oz Post's well-established and equipped 4500-plus retail 
outlets round Australia,; its existing deals with outfits like eBay, 
utilities and financial organisations; and the high regard in which it is 
held by most users – unlike existing telcos which have sparked an 
avalanche of complaints to the telecommunications industry ombudsman.

Telsyte analyst Foad Fadaghi believes Oz Post will be able to build on a 
pervasive organisation which touches most Australians daily, and which is 
already a significant player in the marketing of prepaid mobile phones as 
well as technology-based services.

He believes Oz Post will eventually launch a virtual mobile operation via 
the NBN. "It's too early to say whether they will have a major impact on 
the market, but I see them developing as a challenge to Optus and 
Vodafone rather than Telstra," said Fadaghi.

According to Comms Day's Grahame Lynch, Australia Post brings assets to 
the market that most telcos lack and that only Telstra can really match. 
His advice to existing telcos and wannabes: "Be very afraid".


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