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Progressive in Telecom communications deal

Progressive in Telecom communications deal

Supermarket group Progressive Enterprises and department store Farmers have signed telecommunications contracts with Telecom expected to be worth a total of about $20 million over three years.
The contracts cover all access, voice, data, mobile-data and Internet services to Progressive and almost all services to Farmers.

Both companies are owned by Australian conglomerate Foodland Associated Limited (FAL). Progressive commands about 45 per cent of the New Zealand grocery market, operating the Foodtown, Woolworths, Countdown, Big Fresh and Price Chopper brands. Farmers, the New Zealand-based department store operator and consumer finance and insurance business, operates 65 stores throughout New Zealand.

Woolworths, which was acquired by Progressive in June last year, was previously with TelstraClear, a winback for Telecom worth about $450,000 a year.

Progressive General Manager Information Technology, John Donaldson, said Telecom was the only communications provider that seemed willing or able to provide for all of Progressive’s needs.

“At the front end, we were looking for a provider that could consolidate our costs, offer consistency of service across the group, and provide a one-stop-shop for all our communications and information needs.

“We expect them to be a proactive partner and provide us with real technological input, direction and support into the future.”

Telecom account director Michael Gaunt says a key feature of the agreement with both groups was that Telecom will work with them to create a technology and futures plan that sets out the path forward for all telecommunications services at all sites.

“We are providing them with a robust, secure and fast national data network that will allow them to operate seamlessly across all divisions. And we’ll work with them to provide future network growth and innovation.”

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