Voicemail Market Evolves with AI Opportunity

The growing demand for modern, AI-driven telecommunications services has opened up a new industry opportunity—and Norwood Systems (ASX:NOR) is positioning itself to capitalise. Norwood develops advanced voice communication platforms leveraging conversational and generative AI technologies. 

The company has signed a five-year supply contract with Optus to replace its existing voicemail platform with Norwood’s CogVoice technology. Optus is Australia’s second-largest telecommunications provider, offering mobile, broadband, entertainment, and business solutions to millions of customers.

“We’re thrilled to be supporting Optus on this voicemail refresh project,” Norwood CEO and Founder Paul Ostergaard said.

Five-Year Contract Valued at $2.98 Million

The contract, worth an estimated $2.98 million (excluding GST), follows a successful proof of concept (PoC) completed in late 2023. It covers licensing, professional services, support, maintenance, and migration costs.

Ostergaard added, “This five-year voicemail contract not only validates our technology but also provides Optus with a solid foundation for modernised call completion services.”

Contract Secured After Competitive Evaluation

Optus selected Norwood following a detailed contracting and vendor evaluation process. The agreement was facilitated via Norwood’s Group Master Supply Agreement with the Singtel Group, signed in October 2023.

“Our CogVoice platform will replace Optus’ legacy voicemail system, introducing AI-driven capabilities and improved operational efficiencies,” Ostergaard said.

Platform Designed for Next-Generation Deployment

Norwood’s CogVoice platform is built for low-cost deployment, minimal latency, and seamless compatibility with 4G and 5G networks. It also sets the stage for future premium call termination services.

“We’re committed to ensuring a smooth transition for Optus and their subscribers,” Ostergaard said. “We’ll also be exploring how our AI-powered solutions can further enhance their network operations and customer offerings.”

Performance-Based Payment Structure

Under the contract terms, payments are triggered by progress milestones. There’s also potential for Norwood to deliver additional premium voicemail services, which would be subject to a separate agreement.

Strengthening Position in Tier 1 Telecom Market

This contract marks another step in Norwood’s strategy to expand global partnerships with Tier 1 communication service providers.

“Being selected by Optus reinforces Norwood’s position as an internationally competitive vendor in the CSP sector,” Ostergaard said.

Industry Outlook

As AI-driven solutions become increasingly critical to telecom providers looking to improve user experience and operational efficiency, Norwood’s partnership with Optus signals confidence in its technology and market positioning.

Investors will be watching closely to see whether this milestone contract opens the door to further large-scale deals, both in Australia and internationally.