Joseph Moran gives a pretty thorough review of Netgear’s SPH101 Skype WiFi phone. The basic beats are that that it’s easy to install and the call quality is great, but it’s pricey and the battery has about only 2-3 hours of talk time per charging. One major gripe is that is has no built-in Web browser, rendering public hotspots that require authentication useless for this device.
Recent desertions from Vonage by A-List VoIP bloggers, along with the much publicized troubles of the residential VoIP giant made me think really hard about what the future holds for Vonage.
There are three ways to go.
In the optimistic scenario, Vonage reaches profitability, continues growth, starts to turn around its customer churn problem and becomes the Ma Bell for the 21st century.
In the pessimistic scenario, Vonage continues to struggle with customer conversion and retention and faced with even stiffer competition from the cable companies and from the cellular companies, slinks into raising more cash like an addicted consumer rolling their credit cards over yet again.
Somewhere in the middle, Vonage struggles hard, its stock price drops into $2-$4 territory and one of the big talcos/cable cos snaps it up.
So which is it going to be?
As befits any real financial decision, there are some hard numbers to digest. These are gathered from the best public sources we could find but some of them are not much better than guesses.
Amount Vonage raised in its IPO: $531 million - but there are costs associated with fighting innumerable shareholder lawsuits. Even assuming they win them all, lets say that the real amount raised is $475 million. That’s Vonage’s cash fund for buying new customers.
Cost to acquire a new customer - $239 -according to Vonage itself.
Number of customers that $475 million will buy: 1.99 million customers (calculated).
Pre-existing customers: 1.4 million or so - various public numbers.
Churn rate (rate at which Vonage loses existing customers) - 2.3% per month
Revenue per customer per month: $27.70 - reported in Vonage’s quarterly results.
EBITDA (earnings before interest, taxes and depreciation) per customer per month: $5.39 (unable to verify this - in fact every calculation I could do based solely on public numbers makes it lower than this).
Vonage has stated that it thinks it will become profitable early in 2008. However, my calculations show it running out of money in April 2008. So which will come first?
We’ve decided to harness the power of public opinion. Put your vote on the odds and your prediction of what willhappen in the comments here.
Here’s our take:
Odds of Vonage going broke before it becomes profitable: 5-4
Odds of Vonage becoming profitable before it runs out of its IPO cash: 2-3
Odds of being acquired before June 2008: 1-3
Place your bets…
[ Vonage, voip, internet telephony]
The first wireless headset that will workwith both conventional telephones and computer IP telephony is to be deliveredby GN Netcom with the GN 9300 series.
The latest exec-tech fashion item is aproductivity booster that makes switching between low-cost VoIP calls andtraditional fixed line calls as easy as the push of a button. In fact it’seasier than the push of a button because these headsets automatically switchbetween phone and PC when a call is received so the user never has to even thinkabout it.
Based on true wideband audio performance(6.8 kHz wideband sound in IP mode) are also the first headsets to incorporateDigital Signal Processing technology which filters out incoming backgroundnoise, boosts incoming audio levels and maintains a safe consistent volumethroughout the call.
The GN 9350’s boom-arm also has noise-cancellationon the microphone which means users can be assured that their voice is alwaystransmitted clearly without too much background interference.
GN Netcom says the system is easy to set upthanks to its LCD display controls, while digital security encryption takes outsome of the worry about eavesdropping.
Weighing in at just 26 grams this is alsoone of the smallest and lightest headsets in its class.
“Two hot requirements for the office thesedays are design and mobility. The GN 9300 series has been developed tomeet the growing demand for feather-weight wireless office headsets as they’vemoved from reception desk into the executive workspace,” said Angela Wilde,general manager ANZ for GN Netcom.
There are actually three devices in therange - the GN 9350, the GN 9330 and the GN 9330 USB. The GN Netcom 9300 Seriesworks with both VoIP and traditional phone calls as described above. Then thereare two versions depending on whether you are using a deskphone or not.
The GN 9330 ($473) & GN 9330 USB ($473)differ by whether they work with a desktop/IP desk phones or the USB version isonly for use with PC-based IP telephony.
“The growing use of the mobile phone andBluetooth headsets in people’s personal lives is boosting the desire forwireless working in their professional lives,” said Wilde.
“Driven by consumer demand for wirelessworking, improved efficiency and enhanced personal comfort, the wireless officeheadset market is growing 50% in units annually.
“People want the same level of convenienceat work, at home and in the car. They want to multi-task, check e-mailswhile on a conference call or move freely around the office.
“Wireless headsets are fast becoming anessential part of the professional lifestyle and the GN 9300 series combinessleek design with ease of use,” said Wilde.
Polycom has increased its range of VoiceStation conferencephones with an extra two models targeted at the smaller meeting room/executiveoffice market. One model is the first Polycom conference phone to featureBluetooth wireless.
Both phones have a formfactor which is 33 per cent smallerthan other Polycom models, and have the Acoustic Clarity Technology for quality,full duplex voice conferencing.
“Polycom is committed to delivering the ultimatecommunications experience while also making our industry-leading productsavailable and affordable for businesses and meeting environments of allsizes,” said James Anderson, Polycom Country Manager, Australia and New Zealand.
“The SoundStation conference phones are an icon forvoice conferencing quality and reliability in conference rooms around theworld, and we want to bring that renowned performance to smaller meeting roomsand executive offices. The VoiceStation 300 and 500 offer a solution that issmall in size and price, but big in voice quality and performance,” added Anderson.
The VoiceStation 500 features the same voice conferencingquality and performance as the VoiceStation 300, and adds embedded Bluetoothwireless support enabling users to connect wirelessly to a mobile phone forconference calls, or to a computer for use with Internet calling services suchas Skype, making it an ideal desktop device.
If Bluetooth wireless capability is unavailable, users canalso connect using an accompanying cable through an applications port on thephone.
Polycom’s VoiceStation line is designed for offices andsmaller meeting areas only, while SoundStation is part of a broad productfamily designed for deployment throughout the enterprise including conferencerooms, and other meeting areas, of all sizes.
The Polycom VoiceStation 300 and 500 is available nowthrough Polycom certified channel partners priced in Australia at AUD$599 and AUD$739respectively.
ISPhone Australasia is planning to workwith Equinix’s Sydney Internet Business Exchange (IBX) data centre as a corehub for its IP networks and network exchange services.
Equinix provides network-neutral datacentres and Internet exchange services for enterprises, content companies,systems integrators and network services providers on a global basis.
ISPhone will deploy operations at Equinix’sSydney IBX as the primary network interconnection point for the delivery of itswholesale VoIP services to distributors and resellers.
ISPhone will operate its soft switches,gateways and network equipment at Equinix’s Sydney IBX centre.
By leveraging Equinix’s carrier-neutraldata centre environment, ISPhone hopes to streamline its network infrastructureand gain immediate and direct access to an aggregation of leading carriers,ISPs and network service providers within the same physical location.
ISPhone will be able to connect todifferent networks simultaneously and have a selection of network choices forbackup in the event of a service interruption with its primary provider.
Gavin McDougal, Managing Director ofISPhone Australasia emphasised the importanceof delivering a high quality service to its customers, which are primarily inthe small to medium enterprise (SME) sector.
“We are continually looking for ways toimprove the quality and reliability of our VoIP service. Instead of relying onone carrier to handle our network, we can now interconnect directly with manynational and international carriers.
“This will boost ISPhone’s business gradeVoIP service and enhance our network’s resilience for our SME customers,” hesaid.
Doug Oates, Managing Director of EquinixSydney, agrees that the IBX data centre will further enhance ISPhone’s service.
“Equinix’s carrier-neutral data centreprovides a flexible, robust platform for ISPhone to serve its customers’ needs.It provides ISPhone with the infrastructure to implement a fully redundant andreliable network,” he said.
Mitel has landed a contract to supply an IPTelephony platform to five rigs and associated satellite offices for StenaDrilling, one of the world’s leading drilling contractors.
The core platform is already in place at thecompany’s Aberdeenheadquarters as the first stage in a planned global roll-out. The sites, in Asia,Australia, Africaand elsewhere will be installed and supported by a company called Nessco, aMitel Platinum Solution provider.
In the next six months Mitel IP wirelessphones will be rolled out to Stena Drilling’s five fully submersible rigs andits new mobile rig - Drill Max.
The Mitel 3300 IP Communications Platform(ICP) with IP-DECT handsets will deliver wireless communication to the oil rigsas part of a drive by the drilling company to improve business processes andbring its telecommunications in-house to replace a managed service.
Sharon McLaughlin, IT manager at StenaDrilling, said: “We struggled for months with our old PBX system, which lackedthe level of flexibility we required. Our drilling rigs frequently move and weneed a system that allows us to adapt our telephony systems quickly and easily.
“Previously we were constrained by ourtraditional system and often found ourselves waiting days for an engineer tore-programme headsets and telephone ports, which was neither cost-effective ortime efficient.
“We had also become frustrated that our oldsystem didn’t support the video conferencing equipment we had invested in. We now have the flexibility to make moves,adds and changes ourselves and can integrate new applications quickly and easily,”she said.
The company is hoping for “a considerablereduction in cost and time spent on external engineers” as a result of the newsolution.
It’s got more ambitious plans for thefuture though and expects to implement mobile support at the rigs so thatsenior managers - who frequently travel between sites and work from home - to be able to use the IP communications platformseamlessly.
Recent news on the VoIP marketplace is mostly very very good for cable companies. Not only does a recent report state that the leading cable companies providing VoIP now have better call quality overall than PSTN (and their rivals), but cable companies are also growing their market share extraordinarily rapidly.
This isn’t a complete surprise since the cable companies have a built-in advantage in many markets - a significant percentage of broadband Internet access is already provided by the cable company - which makes it easy for them to sell add-ons like VoIP to the same group.
But here’s the kicker - take a look at this little pricing table.
Cable Companies
VoIP Providers
Not only are the cable companies raking in the business - a lot faster than Vonage is - but they are also making on average of 75% more revenue per customer than the VoIP providers. And to top even that, they are often the broadband carrier for residential VoIP into the home - so they are making money even when the VoIP provider makes money.
This raises two questions - why would a residential customer go with the cable provider VoIP over the VoIP provider and how are residential VoIP providers ever going to make money?
The UK division of FranceTelecom’s Orange is leading the way launching a mobile handset that canuse your wireless home network to make calls when your their and thenswitches to the standard Orange network when you are away from home.
The service will offer a single phone number single bill solution for mobile and VoIP network services.
Althoughthe service is to be offered in the UK, France, the Netherlands, Spainand Poland, the UK will be the first to get the service.
Connecting to the Orange Livebox network via the Internet at home, theservice is able to seamlessly hand over to the mobile network while youare on a call says the company.
The VoIP service bundle includes unlimited calls to landlines andOrange mobiles, although the company says that each market willtailor its proposition to meet the specific needs of customers in thatterritory.
Furthermore, a call initiated at home remains covered by theunlimited offer even when you leave your home. A symbol on the phone’sscreen constantly informs customers of the network they are connectedto, Orange said in a statement about the new deal.
UK customers can pre-registerfor the service now by visiting
www.orange.co.uk/uniquephone, but thefirst units won’t arrive until November. Initially, there are three handsetsto choose from - the Motorola A910, Nokia 6136 and the Samsung P200 -with more due to launch in 2007.
Didier Lombard, President andDirector General of the France Tйlйcom group, said: “The commerciallaunch of Unique phone announces the advent of a new generation oftelephones.
“Today, people use the phone in a different way. Withbroadband, the use of Internet, mobiles, Voice over IP, and highdefinition technologies for sound and vision, our communication habitsare changing very rapidly.
“This is the first real convergenceoffer, dreamed up, developed and commercialised by the group under theOrange brand, and the result of the work of our Technocentre.”
Each home can have up to six Unique phones registered for the service but only three VoIP users at a time.
According to other reports the two phone plans that are being offered are theCanary 50 and the Panther 65, which cost Ј50 and Ј65 respectively, andyield 600 and 1200 minutes a month respectively. Broadband connectionis free.
It might be stolen. TMC tells the tale of Edwin Pena, who was charged with stealing about 10 million VoIP minutes and reselling them, skipping bail. Pena was facing a maximum of 30 years in jail, and has been reported missing for about a month now. The article goes on to say that Pena could rather easily set up shop in a country with less stringent rules.
10:11AM EST: Ted Leonsis is now demoing an AOL set top box TV/PC/Internet device that will be available next week in stores like CompUSA.
The seven Web 2.0 virtues
these virtues apply to any kind of new services or programming that you are trying to develop.
I believe that our job is to make consumers happy - relationships, community, self-expression, giving back and pursuing a higher calling - these are the attributes that really make people happy.
[[ed note - Ted Leonsis is really going a bit overboard in the self-help jargon and the future of technology jargon]]
ends..