SpiriTel Spirits Away Major Voice Contract from BT

Business communications service provider SpiriTel has won a major private voice network contract with a leading international hotel group.

The two year deal, expected to generate £600,000 of revenue, is a significant cross selling success for SpiriTel who will replace BT as the provider of the customer’s private UK voice service. In addition, the customer has renewed a three-year maintenance agreement with the
Company, which is expected to generate over £2 million of revenue.

This contract win is further evidence of the successful delivery of SpiriTel’s “acquire, integrate and grow” strategy, with organic growth being driven from cross-selling the Group’s expanded product range covering fixed, mobile, data and networking services. The contract brings the total of cross-sales orders to over £2 million since the April 2008 year end. SpiriTel is also in negotiations to provide an additional, UK-wide voice replacement service covering all the customer’s sites.

Commenting on the new contract win and renewal, Alastair Mills, CEO of SpiriTel said: “Following the renewal of their maintenance contract, we were delighted to be awarded a major contract to replace a BT service for this customer, one of our existing global hotel customers.

This is another significant cross-sell for the Group, delivering on one of our key strategic objectives. In addition, the deals increase the level of earnings visibility and cash generation in the Group. We are operating in a particularly challenging economic environment. However, we expect this to create ongoing opportunities for SpiriTel as customers assess cost saving opportunities more closely. We have a track record of providing cost effective solutions that enhance productivity for customers and, with our expanded product portfolio, we can now provide the full range of converged services that our customers are seeking.”

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