Totalfone spins off VNO to end conflict

Totalfone spins off VNO to end conflict

Totalfone has spun off its wholesale VoIP business to create a new managed voice provider, VNO.

The new company will bundle services and infrastructure to create a managed voice service for resellers and ISPs targeting the SOHO and consumer markets.

Totalfone will continue to trade as a VoIP reseller and is currently seeking a new managing director now that its boss prior to the reorganisation, Elizabeth Cascun-Valencic, was running the VNO business. A conflict of interests had prompted the split, according to Cascun-Valencic, because Totalfone was selling its VoIP service to end-users and resellers. There was some concern that Totalfone was getting a better deal than its wholesale customers, she said.

The service had proved popular with tier-two ISPs and network integrators, Cascun-Valencic said.

"Many of those organisations are not in a position to provide their own infrastructure, be compliant or even make money," she said. "While they wanted to enter the voice marketplace they felt they couldn't. Uptake in the consumer and SOHO markets hasn't been up to the rate expected so the volume isn't there to warrant investment in infrastructure. This model provides a more cost-effective way to target those markets."

While partners would effectively be reselling the same service, the choice of a timed or flat rate model would allow them to differentiate their offering. "How they present the services, what clients they target and what they can bare allows for a lot of diversity," Cascun-Valencic said.

"In a regional area, a higher local or regional price may be viable as clients are already getting hammered by Telstra or Optus."

VNO would look to recruit an additional 20 ISPs and additional integration partners in the next year.

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