Telecom Plus stands out in the telecoms industry. While other companies tempt customers to join with faster internet speeds or flashy mobile phones, this telecoms provider draws in subscribers in with cheap gas and electricity rates.
“We’re unusual in that we are the only company spanning both the telecoms and energy markets,” Charles Wigoder, the chief executive of the company, says.
The company, which trades under the Utility Warehouse brand, started out as a fixed-line telecoms reseller before adding mobile, and then broadband, to its arsenal. However, competing in the “triple-play” market against the likes of TalkTalk and Virgin Media was only the beginning, for it moved into the gas and utility markets to become something of a one-stop-shop for customers looking to source different services. In the future, the company could expand to providing water and television to offer even more services on one bill.
Mr Wigoder notes that when the company was founded, in 1997, a number of electricity providers were moving into the fixed-line telecoms market but that Telecom Plus is the only one that has lasted the distance. He said: “The fields are littered with the skeletons of companies that have wasted shareholder funds entering the telecoms market. They just couldn’t make any money.”
The company has bucked that trend by keeping costs to an absolute minimum. It has more than 300,000 customers to whom it sells more than one million services. However, unlike its rivals, it has paid very little to add new users to its base because it does not have an advertising and marketing department. “We don’t ever advertise and make no outbound calling,” Mr Wigoder said. “We just wait for the customer to come to us and say: ‘We’ve heard about you.’ ”
The company is also a rare breed in UK telecoms in that its investment case is driven by growth at the revenue line, rather than its profitability, as its reseller model is geared towards top-line expansion.
News Source:- http://business.timesonline.co.uk
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