Hi Greencardthanks for the report, interesting reading. Can't...

Hi Greencard
thanks for the report, interesting reading. Can't take much from the accounting numbers, but some general thoughts:

Strangely the report says my net fone is not ASX listed, but it is - MNF. Hope you didn't pay too much for this quality research! According to MNF, they will reach break even in 2007.

A few thoughts about the VOIP market:
1 - VOIP is taken up by people who want to save money, so they would tend to try and save as much as they can (will compare on price) - thus, from the BBY report table, why wouldn't they choose MNF ($5 min plan vs $10 min)? If ENG main marketing line is saving money, then they must be the cheapest, or have some other point of differentiation.

2 - for those who won't take it up themselves (need selling to), it has to be simple, as they have limited knowledge of the technology. The signup process must be very easy, and the best method would most likely be to signup whilst signing up to broadband (ie. all at the same time). The report notes the ENG deal with PEO, but almost every ISP have their own VOIP. Why would a customer setup engin themselves rather than take the ISP VOIP?

3 - with those points in mind, it all comes down to marketing - take Telstra as an example. Many people could save money switching companies or technologies, but don't due to many reasons - I suspect the most common is "switching costs" - both monetary and perceived (ie. the bother factor). Will people risk call quality, new number etc. going to VOIP? Is it easy for non tech people to understand what's going on?

Lucky I only have a very very small number of shares! Seven purchase gives some hope (but could have been work experience kid, small money to them), or maybe they have uranium. See how it goes.

cheers,
toadmussen