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VoIP Ain't So Easy |
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Written by Adam Gosling
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Wednesday, 30 November 2005 |
With revenues of $100 million per year you would think People Telecom has the volumes to make it in the low margin voice business. Think again.
The company, which got into the VoIP business through its acquisition of Swiftel in March this year, has turned to broadband telephony specialist engin to provide wholesale IP Telephony services in preparation for a broader roll-out to ADSL customers in the New Year.
The deal is engin’s 17th wholesale contact, but People Telecom is undoubtedly it’s largest partner. The five year old telco is focused predominantly in the consumer and SME sector and was recently listed as the fastest growing company in Deloitte’s annual Fast 50 report. People Telecom turned in a stunning result of 2410 per cent growth.
Ilkka Tales, CEO of engin said the process of porting customers across to the new network would be complete by Christmas with a broader offering to existing People Telecom ADSL customers planned for early 2006. “They will provide the Customer acquisition and we provide the backend,” said Tales.
Pointing out that while there are more competitors in the VoIP space today than there was a year ago, Tales said a number of players had dropped out of the market due to the challenges inherent in the business.
“Companies are finding that the barriers to success are very high in VoIP. It’s a very high volume, low margin business,” he said.
This point is ably demonstrated by People Telecom’s decision to outsource its VoIP services.
www.engin.com.au
www.peopletelecom.com.au
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