Online and mobile marketing company ComTel Corporation (ASX:CMO) has agreed to terminate a major supply contract with a wholesale customer in exchange for $1.1 million upfront.
The company said it arranged to drop the contract to provide prepaid mobile telephony wholesale services to the customer, as it suited its strategy of shifting its focus to its marketing activities.
ComTel currently onsells both pre-paid and post-paid telecom services through a network capacity agreement with VHA.
ComTel added that the break was contingent on the wholesale customer negotiating its own direct agreement with VHA, and that it may be eligible for an additional payment if said customer meets certain airtime volume growth targets.
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