BENDIGO Bank has ended its standalone venture into telecommunications, announcing that Bendigo Bank Telco will merge with Bendigo Telco.
Customer service staff for Bendigo Bank Telco were based in Bendigo, but the bank has given a reassurance that the “vast majority” of staff will either be redeployed elsewhere in the business or transferred to Bendigo Telco.
Bendigo Bank Telco offered mobile, NBN and ADSL packages using the Optus network.
In a statement, Bendigo and Adelaide Bank said the changing nature of the telecommunications business had prompted the decision.
“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,” the statement reads.
“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 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 merger is expected to be complete in March.
Existing customers will be transferred across in the coming weeks.
In 2015, Bendigo Bank Telco’s 4G Lite plan won the Best-Value Money Plan – Average Usage category in Money magazine’s Best of the Best awards.