Bendigo Bank scraps its standalone telco business in favour of a new partnership
Bendigo Bank Telco will soon re-emerge as part of Bendigo Telco's operations.
The message, which remains on the site's front page as of writing, doesn't provide much detail regarding the telco's future. Is it ceasing operation entirely, or just going on a brief hiatus while it restructures its plans?
To find the answer, we reached out to Silvana Arena, Head of Public Relations at Bendigo and Adelaide Bank. Arena provided us with an official statement from the bank regarding this sudden announcement along with details on how Bendigo Bank aims to compete in the telecommunications market going forward:
The structure of the telecommunications industry has changed significantly over recent years, in no small part driven by the advent of the National Broadband Network (NBN).
As a result, Bendigo and Adelaide Bank has reviewed the Bendigo Bank Telco business and determined that having a stand-alone telco company is no longer the best way to participate in the telco market.
Consequently, the Bank has entered into a non-binding memorandum of understanding that effectively merges our business with Bendigo Telco Limited, Bendigo town’s own specialist telecommunications company. This will further strengthen the strategic relationship between the parties and Bendigo and Adelaide Bank continues to be the largest shareholder and customer of Bendigo Telco.
The parties will work together to ensure a seamless transition for the transferring telco customers, who can expect to get a continued level of excellent service.
The vast majority of the staff employed by Bendigo Bank Telco have already been redeployed within the Bendigo and Adelaide Bank Group or will be offered employment at Bendigo Telco.
The parties are aiming to complete the transaction in March 2018.
According to the statement, the arrival of the NBN has forced Bendigo Bank to reassess its role in the industry, leading it to conclude that its standalone telco service is no longer the best way for it to compete in the market. Consequently, the bank has entered into a "non-binding memorandum of understanding" with Bendigo Telco Limited, a local Internet provider supplying services to Bendigo residents.
This agreement will see Bendigo Bank Telco and Bendigo Telco Limited merge into a single telecommunications provider. Many of the staff employed at Bendigo Bank Telco have already been shifted to new positions with Bendigo and Adelaide Bank, while others have been offered jobs at Bendigo Telco Limited.
Bendigo Bank plans on finalising the merger in March, with existing Bendigo Bank Telco customers due to be transferred over to the new provider in the coming weeks.