Primus to resell Optus GSM

Post-paid plans to be available within 2 months, with pre-paid to
follow.

=-=-=
http://australianit.news.com.au/arti...nbv%5E,00.html

Primus switches to Optus
Michael Sainsbury
MARCH 16, 2005

PRIMUS, Australia's fourth-biggest fixed-line phone company, has dumped
its long-standing mobiles deal with Telstra in favour of rival Optus as
it searches for up to 350,000 mobile customers.

Following a competitive tender, Primus has signed a wholesale deal to
sell services off Optus's national GSM network to its almost 700,000
small business consumer customers for the first time.

Primus has had a couple of attempts at building a mobile customer base
through deals with Telstra - first for its CDMA network and lately with
Telstra GSM.

Like other fixed-line telecommunications companies, Primus is
experiencing pressure as users move from using fixed line to mobile
phones for voice services. The number of fixed lines connected in
Australia is decreasing each month.

"That was one of our strategic drivers," Primus strategy and products
chief Campbell Sallabank said.

Optus mobiles strategy director Chris Lane said: "Primus is possibly
the biggest potential partner for us out there."

About 18 per cent of Optus's 6.2 million mobile accounts come through
wholesalers. The biggest is Virgin Mobile - 30 per cent owned by Optus
- with over 500,000 customers.

B Digital and Optus subsidiary SimPlus are other big wholesalers.

Mr Lane said: "Primus has core relationships with households. They
should be able to find some lever to link in at least one family
member, or possibly two or more, to a Primus bundle (of local and/or
long-distance telephony, internet, and mobiles).

"We are quite optimistic that, over time, 50 per cent of their base
could be bundled with a mobile."

Primus would launch its mobile with contract plans within two months,
followed by pre-paid offers, Mr Sallabank said.

Last year Primus, a wholly owned subsidiary of a US listed company of
the same name, cancelled plans to list on the Australian Stock
Exchange.

Primus's Australian business is the group's most successful division.

The Australian