Bit players giving VoIP a bad name says Engin

Stuart Corner
Monday, 20 November 2006 05:21

Business IT - Technology

The chairman of VoIP service provider, Engin, in his address to the company's AGM says the growing number of small VoIP players are giving the technology a bad name in the eyes of consumers.

Noting recent ACMA figures that there re 118 VoIP service providers in Australia  (market research company Market Clarity puts the number at 225 ) Engin chairman, William Jephcott, said: "Most of these are relatively small, undercapitalised niche players. Our concern is not competition for market share but industry reputation. There are significant barriers to entry to establish a reliable and comprehensive broadband telephony service such as that built by Engin. National coverage of points of presence, a modern and comprehensive customer management and billing system and significant cash resources are
prerequisites."

Engin, in which Seven has just taken a 33 percent stake for $26 million operates its network and services from 13 data centres across Australia, according to CEO, Ilka Thales.

Jephcott said: "Broadband telephony is rapidly becoming main stream. The technology is proven and simple for customers to adopt...However, we still face the challenge of dispelling the common misconception that Engin's service is comparable or the same as peer to peer computer based communication...Peer to peer operators have a business model, which is challenged in generating meaningful revenue per customer. Peer to peer services also struggle to comply with many telephony licensing and regulatory requirements including lawful intercept and emergency calling. Engin has none of these concerns. We have solved the emergency calling problem and have achieved full carrier licensing status."

Engin claims to have reached 49,000 paying customers at the end of October with ARPU of $30 per month for its own retail customers.. It expects to pass the 100,000 mark by June 2007, Jephcott said. Engin sells its services direct and through 24 wholesale partners the latest of which, Wild IT, was announced at the AGM.