eng v mnf v fre , page-14

Thanks Standup,

Interesting comments about the backend purchases. I was thinking about such a strategy as well. Symbio deliver on 10% less margin than ENG. Symbio's system is such that a they could provide termination without it affecting current services as they have proved already.

Without fully understanding the technicals behind ENG system, lets say Seven writedown the ENG backend system (because WIMAX seems to be hitting Telstra/Optus brickwalls) and gets Symbio to provide the termination. Next logical step would be for someone to buy out both ENG/MNF, sack ENG management/staff who are not performing (or overpayed) and sit on a client base of 130,000 with MNF margins in place (and the Unwired investment in the background). Both ENG and MNF are just retail now. Symbio is wholesale.

End result would be a growing client base of 130,000+ at say 75% PA consisting of MNF margins and brand names with Seven's Unwired in the background. Now rollout ADSL2 and Naked DSL, which say Seven could advertise quite easily. The combined entity is immediately profitable and would be a valuable vehicle. Do a deal with Jajah.com or some one as such to combine mobile VoIP

Sevens already got 58% of one VoIP company - why not have two then grow them under the MNF banner. They use the exact same telephony equipment with the addition of Virtual PBX.

If the WiMAX comes to town, sell the backend to Symbio for equity in Symbio - then float Symbio. By then the retail client base should be around 300,000 and still growing.

We have witnessed the huge growth of VoIP on bugger all advertising revenue. Throw a few TV/radio/WAN advertisements for a few weeks and test the market. It would catch Telstra/Optus right off guard and maybe give them some humble pie to munch on for messing with Unwired.

There goes my alarm clock....time to wake up lol

Cheers,
The Sparkler