re: sylvan gone into hiding I recently exited BRO as I am no longer convinced of their ability to meet their ambitions, especially in the VOIP arena.
There are three things that concern me in their presentation.
1. There are no estimations of the corporate sector in the VOIP market. In my view this is where the money will be. The residential sector will wise up to the fact that they can call their mates via VOIP for FREE, no need to pay. Consumers will not care about the slight quality difference. Corporate on the other hand need quality and the ability to regularly call land lines via VOIP.
2. Because of the above I cannot for the life of me see every customer spending $60 a month. They are just crazy figures. I do not know ONE person using VOIP who spends $60 a month. For many as mentioned calls will be FREE, and for those that opt for a VOIP provider and 10c calls, 600 calls a month AVERAGE for all users is way over the top.
3. Its nice to want to be the premier provider, but I cannot see what will differentiate BRO so much for this to happen. These are very bold claims. The competition is very hot, just look here for the current VOIP providers:
http://www.voipchoice.com.au/planframes.php
It is NOT difficlt to become a VOIP provider, the barrier to entry is low. It is difficult only because of the strong competition and the low margins.
In summary, I think for companies like BRO, the best positioning is for content-based offerings. On this basis I can see why they have encompassed VOIP as part of thir offerings, this does make sense, and they should be able to turn some sort of a business n time, but I think their VOIP plans alone are very grandiose.
Cheers
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