Excerpt, Greenberg Interview, FBR Growth Investor Conference:
Friedman, Billings, Ramsey Growth Investor Conference Issue
Published in The Wall Street Transcript
twst.com
twst.com
Company Interview Excerpt
STEPHEN GREENBERG - NET2PHONE INC (NTOP)
Full article published: 6/2/2004
TWST: Tell us about Net2Phone.
Mr. Greenberg: Net2Phone was founded in 1995. It is a pioneer and leader in the world of VoIP, and today we are a company that is an enabler. By that I mean, you give us a high-speed connection, we will put you in the telephone business. We are a company with a strong balance sheet; we have $130 million plus in cash and no debt, and we continue to try to exploit the technology that we helped pioneer.
TWST: Give us an idea of what you offer versus what the other telephone companies have to offer.
Mr. Greenberg: First, we are the only company in the world today that offers to the cable world both a SIP-based and a PSTN or a primary line outsourced telephony VoIP service. By that I mean, it is fully outsourced and it is a soup-to-nuts offering where we do everything from the initial planning, engineering, training to all of the nitty-gritty telephony that has to be done. We manage the network, and at the end of any situation we spit out a unified bill, and we have been doing it for about 16 months now.
Our first model was in Luquillo, Puerto Rico, with Liberty Cablevision of Puerto Rico, which is about 300,000 homes. We are billing about 1,500 of those now, and in the next few weeks we are going to move to the full 300,000. Our voice quality, on a Morse score ' if 4.0 is considered toll quality by international standards ' we have been averaging greater than 4.1. We are seeing about 1,100 minutes of use per subscriber, which is about the same, actually a little more than the incumbent RBOC gets. We are seeing about 30% of those calls being inbound, which means people are giving it out as their primary line that is a packet cable or PSTN or a primary line solution we are using in Puerto Rico. Customer satisfaction has been well into the 97%, 98% range, and that is a business which in many ways is new. We derive today very little revenue from that business, but it is a business which we have more than fabulous hopes for.
Our core business, which we call Net2Phone Global Services, takes advantage of the VoIP background and has been around since 1995. It is also an enabler, and there we basically find partners and liberalize the developing countries like Mexico, Panama, and Brazil. And we enable those partners, as I indicated earlier, to be in the VoIP telephony business; we offer them a suite of services, everything is prepaid. That business is where all of our revenue, which is north of $90 million a year, comes from today. When our management team took over 'it will be three years this October' it was running at a $70 million a year loss. It is now in a segment reporting basis, cash flow positive and has been for the last two quarters.
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June 2-3, 2004
Friedman Billings Ramsey 8th Annual Growth Investor Conference
Presenting the Best of Technology, Media, Telecom and Healthcare
June 2-3, 2004 · MILLENNIUM BROADWAY HOTEL - NEW YORK · NEW YORK, NEW YORK
Net2Phone
Wednesday, June 2
4:50 – 5:20 p.m.
Webcast:
fbrcorp.com
Management will discuss recent partnerships and product developments at Net2Phone as well as provide a market outlook on Voice over IP. |
