BuddeBlog

I am sure that, like me, many of you will be tired of hearing all those ICT managers saying that they are, oh, so focused on their customers and that their major occupation is listening to what they want.

Even if we give them the benefit of the doubt and accept that they really may be doing this, these customer-focused exercises seldom produce anything that demonstrates the fact. They always seem to come up with the most complex price plans; with bundles that don’t suit me; and with devices that are classic examples of user-unfriendliness.

Just some of the issues that come to my mind …..

• Providing a mobile call plan that really delivers me the best service for what I want – we estimate that the failure of the industry to provide such customer services nets them 10%-15% in additional revenue, since nobody is actually able to find the best plan. There might be a conflict of interest here with true customer service.

• Installing new services on our PCs, mobile phones, iPods, etc. They all say that their devices (with that new program or update) are extremely simple, yet the consensus is that it is very likely they will not work first time, leaving you with a problem to sort out. And, while I am happy to pay for a service to do this for me, most of the time that service is simply not available.

• Vendors’ features, not my features. True, most devices I own have over a thousand features – perhaps, who knows, even the ones I need. But, unless you are a teenager, what hope do you have of finding them? Why can’t they be delivered pre-set with ‘my’ applications? This is one of the key reasons data services on mobile phones are not seen to be user-friendly, and therefore are not used.

• Supporting customers’ Internet connections when they are attacked by a virus. For most users this is a traumatic experience, as their providers leave it up to the customer to sort out the mess.

• Simplifying the myriad wires connecting VCRs, DVDs, digital TV and pay TV receivers and surround sound. If you have more than three or four devices it is likely that you won’t be able to manage the cable forest at the back of the home ‘entertainment’ set-up.

• No outages – of several hours, several minutes, or even several seconds. This is particularly relevant when trying to obtain an Internet connection, a dial tone, or when trying to record your favourite show on your DVR.

• The curse of bundles. Give me the choice to select my own bundle of triple play or pay TV services.

• Feel free to add your own customer service wishes to this list.

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In September 2006 BroadIP indicated it is retreating from the telco market and sold its VoIP business to MyNetPhone.

In April 2006 the Australian publicly-listed company, Broad Investments, a major services provider in the premium mobile content market, entered the broadband telephony market with the launch of wholly-owned subsidiary BroadIP, a corporate and residential VoIP provider offering full national coverage.

BroadIP has embarked on an aggressive growth strategy and is aiming to become the market leader based on paying subscriber numbers and customer revenue in the SME market within one year. It is also looking to become a significant player in the large corporate space.

This is a market segment for which BroadIP has developed a very cost-effective product, offering savings of 50%-55% on their current telecoms expenditure.

BroadIP has also acquired 2,000 residential customers following the acquisition of the small but profitable broadband provider Shiftreload.

BroadIP is negotiating with US and European VoIP providers for global termination and reciprocal trade. Once these deals are in place the company will generate additional revenue streams by means of unlimited international call products and by terminating calls for the customers of other international VoIP providers.

BroadIP claims to be the first Australian company to offer a bundled broadband, unlimited VoIP and line rental product and a true unlimited local and national access plan for residential customers.

Exhibit 1 – BroadIP price plans

Residential

$19.99 per month

Local and national calls – 200 minutes and then 10 cents flat rate per call thereafter

Calls to mobiles – 27 cents per minute – international rates start at 2 cents per minute $49.99 per month

Unlimited local and national calls



Calls to mobiles – 27 cents per minute – international rates start at 2 cents per minute $120 per month

Bundled broadband and voice

Broadband connection plus unlimited local and national calls (as per the $49.99 per month plan) and Telstra line rental

Corporate

From $25.00 per month per user

Local and national calls – 250 minutes and then 10 cents flat rate per call thereafter

Calls to mobiles – 27 cents per minute – international rates start at 2 cents per minute

(Source BuddeComm)

BroadIP and Uecomm join forces in VoIP

In July the company announced an agreement with data specialist Uecomm to work together in delivering VoIP services and data telecommunication solutions for the SME and Corporate market in Australia.

BroadIP will provide VoIP termination and the Customer Premises Equipment (CPE) and IPT hardware, while Uecomm will provide the data component of the solution.

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Mobile carrier Account type GSM CDMA Total

Telstra Prepaid 3,094,107 475,912 3,570,019

Postpaid 3,808,213 856,799 4,665,012

Optus Prepaid 2,789,344 – 2,789,344

Postpaid 2,062,917 37,004 2,099,921

Vodafone Prepaid 2,052,610 – 2,052,610

Postpaid 928,390 – 928,390

Hutchison Orange Prepaid – 92,000 92,000

Postpaid – 326,000 326,000

Total Prepaid 7,936,061 567,912 8,503,973

% prepaid 54% 32% 51%

Postpaid 6,799,520 1,219,803 8,019,323

% postpaid 46% 68% 49%

Combined totals 14,735,581 1,787,715 16,523,296

(Source: ACMA December 2005)

Table 3 – Prepaid market shares – 1999 – 2005

Operator 1999 2000 2001 2002 2003 2004 2005

Vodafone 50% 40% 30% 24% 24.1% 22.9% 24.1%

Optus 30% 30% 35% 35% 35.1% 34.8% 32.8%

Telstra 20% 30% 35% 41% 40.8% 42.3% 42.0%

Hutchison n/a n/a n/a n/a n/a n/a 1.1%

(Source: Paul Budde Communication, estimates)

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