Partner Article

Lucrative deal for telecoms group

A fast-growing telecoms firm expects to increase its £4.5m-a-year turnover by 20% after landing a deal to service 4,500 potential new customers.

Gateshead’s Russell Telecom has won a contract – formally held by North East competitor BNS Telecom - with the North East Chamber of Commerce (NECC).

The deal, which Russell will handle in partnership with Scottish mobile technology group 8020, will see the company offer communications packages to each of the 4,500 NECC members.

Managing director Lawrence McCaughey said the five-year contract would boost annual turnover by a fifth this year, or by around £900,000.

It is also likely to result in a recruitment drive at Russell’s headquarters on the Metro Riverside park to add to its existing 40-strong workforce.

Dumfries-based 8020 will also recruit a handful of staff that will also be based in Gateshead.

Mr McCaughey said: “We currently have between 3,000 and 4,000 customers. The new contract will give us the opportunity to bring in more business and we will increase our customer service team by between 5% and 10%.”

8020’s managing director Andrew Edgar said the arrangement with the NECC would help to boost his company’s North East presence.

He said: “Much of the talk in the telecoms world now is about convergence, with fixed line operators offering mobile packages and vice versa. But on the whole, if a company has specialised in one sector to date, they are not experts in the other.

“With Russell 8020 you get two experts for the price of one as both companies have extensive experience and understanding of their respective sectors.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .