Micromagic Contract Win
Avanti Communications Group plc (AIM: AVN), the broadband satellite operator, announces it has signed a contract to supply wholesale broadband services to Micromagic Ltd of Ireland.
As a wholesaler (the entry level of contract for Avanti’s services), Micromagic has made a minimum order commitment of £100,000. Wholesale contracts represent a lower level of committed revenue than VNOs, but with a price equivalent to over £2,000 per MHz per month, are more profitable and therefore form a useful aspect of Avanti’s portfolio.
David Williams, Chief Executive of Avanti, said: “We are very pleased with our accelerating momentum in signing distribution partners, which gives us confidence in meeting our pre-sales objectives. We now have 24 distribution partners in 10 countries in Europe with levels of commitment ranging from £100,000 to £9 million. The results of our recent tour of marketing launch parties at British embassies has been strong, we expect to see significant new contract flow soon as a result. The pace of European commission funded rural broadband projects is also encouraging, with several large contract decisions pending.”