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Tortuous VoIP Launch Nears |
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Written by Adam Gosling
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Tuesday, 29 August 2006 |
The award for the most publicly troublesome VoIP service
launch in the Australian market for 2006 must surely go to Adelaide-based ISP,
Chariot.
We have no idea how the implementation has gone technically,
but the corporate machinations that lead up to the launch of Chariot's VoIP service have been worth
more than one mention on this web site.
The company has announced to the ASX that its IP Telephony
service will go live on 30 August, but the company's public profile and its
business has suffered greatly in the lead up.
First off it was revealed that erstwhile partner Transcom International was
taking Chariot to court over what it alleges was a failure to fulfil contractual
obligations to fund the local Transcom start-up in Queensland.
The legal bun fight looked like
getting nasty as the media spotlight was turned on the court process. In
response, Chariot announced
it would roll-out a VoIP service without using Transcom as a partner, which
still plans to do.
But at the same time it seemed the spotlight reminded ASIC that it had unfinished
business with Chariot MD, Robert Horlin-Smith. ASCI pressed charges against
Horlin-Smith over what it claims were some dubious dealings during an earlier
life in the Wine Industry and he ultimately resigned to
face the charges away from Chariot's Broad Room.
A new CEO was anointed, Financial Director Garry Hersey was
promoted to the position and soon after announced a restructure of the
company's operations "to improve its on-going performance and financial
position".
The restructure involved centralising the branch network and
closing nine offices in Victoria, NSW and Queensland and leaving three regional
centres located in Adelaide, Ballarat and the Gold Cost.
This meant that 48 permanent and casual staff were
retrenched at an estimated saving of more than A$1 million net pre-tax in the
current fiscal year and A$1.3 million annually thereafter.
At the time, Hersey said: "going forward, our focus is very
much on organic growth and operational improvement. Building on what we have is
the core thought process for us now."
"The company's ability to lead the market is being stifled
by its overhead structure and the cost of debt used by the company to acquire businesses
over the past few years," he said.
"Our existing office network is primarily a consequence of
that previous acquisition program and we are in effect completing the integration
of those businesses into Chariot.
The centralisation followed a debt restructure back in June,
before the company's troubles became fodder for the media.
Chariot will initially try to sell the VoIP services to its
existing ISP user base starting with those who have already registered their
interest in the new service.
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