Comms Dealer interview with CEO David Crombie

Monday, 07 May 2007 00:00

Aylesbury & London based hosted services provider Voicenet Solutions saw connections grow by 400pc in 2006. CEO David Crombie reckons that he’s just getting into his stride.

Every new technology creates opportunities but you only profit if you think on your feet and adapt your business model intelligently. Crombie has had plenty of practice having honed his business skills in the highly competitive environment of the Mars Corporation. “I worked in the vending division, which case hardened me pretty quickly.”

When LCR arrived, he co-founded Symphony Telecom and from there was involved with 365 Corporation PLC which became Ekcoh Technologies PLC– a background that gave him invaluable experience of publicly quoted companies. A natural entrepreneur, he exited as the market matured and repeated the process with other telecoms start ups.

He Co-founded Voicenet Solutions in 2004. “VoIP had been around for some time but it was the universal availability of broadband that created a viable target audience and made a hosted service a realistic proposition.

“It was brought home to me quickly that it’s a totally different animal to PSTN. Customers have a confidence hurdle to jump and confidence only comes with guaranteed Quality of Service. We deliver that because we have invested in our own switching infrastructure. We control QOS end to end.”

Voicenet Solutions currently has around 100 resellers who are recruited from two channels. “About 85 sell our branded service where we handle administration and pay a substantial commission on turnover. The remainder sell a white label proposition. They pay a wholesale rate and have a similar relationship to us as conventional switchless resellers have to a carrier.

“Our portfolio includes Hosted VoIP, SIP Gateway, Hosted Call Recording, broadband and IP phones. We are now looking for new partners to help us reach our target of a doubling of connections every six months for the next year and a half – and it’s achievable.

“That said, we are picky. White label resellers must be able to demonstrate both the capacity and commitment to get the numbers to keep each of us on track. Sellers of branded services must be able to accommodate a changing business model.”

Crombie believes that it’s relatively easy to change to a recurring revenue model as opposed to a big up front hit. “Profit opportunities remain from CPE such as routers and handsets. And change, while accelerating, isn’t going to happen overnight.”

Just as he investigates potential partners, he knows that they have to investigate Voicenet Solutions just as thoroughly. “Were I a reseller, I’d want to know if a hosted service offered automated system provisioning. I’d have to have proof that QOS would be as good as with PSTN and I’d ask what other carriers are involved.

“Then, I’d find out what is involved with CPE, what bandwidth customers would need and what handsets are available. I’d make sure that the switch is based in custom built premises with full power back up and that there was a fall back resource with auto divert to guarantee continuous QOS. If I asked Voicenet Solutions these questions I would get satisfactory answers and the promise of better than 99.99pc reliability.”

Voicenet Solutions will soon launch a WiFi-GSM service. “We have developed a product based on existing technology that will deliver fixed to mobile convergence. It allows a mobile handset to be used as an internal extension while giving GSM performance away from base. It works in WiFi hotspots, too.”

Currently, The company has 16 staff and aims to increase its reseller base to 150 within a year. “We invest heavily in technical and sales training, and effective demonstration techniques. It’s a proposition that makes it easy for end users to operate to a fixed cost budget, improve efficiency and grow in size without any concerns about system capacity.”

As he points out, “It’s working effectively now for SOHOs, SMEs and corporates, all of whom demand QOS. And if you don’t tell your customers, someone else will.”

Personal File

Top tip. Always be ready to alter strategy.

My team. Leeds United. Could we have two minutes silence please?

My sports. Golf – but never good enough to avoid defeat by a customer.

My cars. I’m a petrolhead. I’ve owned around 70 but the Porsche is history. Now it’s a sedate Mercedes.

Perfect night out. Good food in good company.

My role models. Shackleton of the Antarctic, Mallory and Irving on Everest.

My music. The Stones, Kinks and Kookes.