Partnership has expansion plans for internet kiosks

By MICHAEL FOREMAN

Listed public internet access terminal operator Ephone has announced a partnership with Auckland wireless internet provider SafetyNet.

They will jointly develop the internet kiosk market.

Under the partnership, Ephone will provide terminals which accept pre-paid cards or credit cards as well as management software, while SafetyNet will install and maintain internet connectivity.

Ephone chief operating officer Brent Smith said SafetyNet would provide internet services at the company's existing 16 terminals at two sites in New Zealand, but it would eventually support 85 terminals at 16 sites in Australia.

Mr Smith said Ephone also had definite orders for a further 35 terminals in New Zealand.

While Ephone has previously relied on Voyager for internet services, Mr Smith said the agreement with SafetyNet would allow the company to continue to use a number of "broad-pipe" internet service providers.

SafetyNet had previously entered the public access terminal business in its own right.

The company became 70 per cent owned by Savoy Technologies, a subsidiary of listed property investor Savoy Equities, in February in a deal worth about $7 million.

In May, SafetyNet installed two trial systems at two Caltex Starmart outlets, using locally manufactured terminals under the SurfNet brand.

SafetyNet marketing director Drew Glucina said: "It's true we did start to go down this path but we decided to concentrate on connectivity and leave the terminal side to Ephone."

Ms Glucina said she would meet Ephone to discuss strategy, but the Caltex sites would now be jointly managed.

SafetyNet would provide either wireless or cable-based internet services. The choice would depend mainly on the customer's location.

SafetyNet's wireless network, based on about a dozen transmission sites, covers Auckland from the North Shore to Otahuhu.

SafetyNet says the company is taking $4 million to $5 million annually in revenue but projects growth to $12 million in the next year.