LaSilkee Virtual Connection, Ltd. has been in operation for just over two years. It has recently become cash-flow positive. Current gross monthly revenue is approximately $50K (USD). The business has tremendous potential, but to date has been under the ownership and control of management with little or no telecommunications experience. The ownership of the company has asked NGT to take over a 75% ownership position in the company and grow it to new levels. The current ownership would like to retain at least 25% of the company. NGT interprets this as a positive indication, in that they have confidence in our capabilities, and desire to participate in the company’s future success.
NGT feels that with its highly skilled telecom management team, and its experience in similar developing market, it can quickly increase the revenue potential of the company. For example, NGT has carrier commitments for VoIP traffic, terminating in Jordan that is projected to increase monthly revenue to over $150K within sixty to ninety days. Traffic transiting through Jordan to neighboring countries could easily double that amount over a six to eight month period.
Voice over Internet Protocol
In order to more completely appreciate the value of a relationship with LaSilkee, it may be appropriate to more fully explain VoIP service and how it has impacted the telecommunications industry.
Voice over Internet Protocol (VoIP) is a relative newcomer to the telecom realm. However, in principal, it is no different from the basic concept of telephony developed by Alexander Graham Bell. The primary difference is that voice is converted and transmitted digitally, rather than remaining in its native analog format. Since VoIP is Internet Protocol-based, it can be transported over the Internet inexpensively. However, this is both a curse and a blessing. While the Internet provides an inexpensive transmission pathway, it can also seriously degrade the quality of the VoIP call.
Even though VoIP is currently growing internationally at phenomenal rates, quality-of-service issues have impacted its wide-scale deployment in emerging markets. One of the factors contributing to VoIP quality is the network on which it travels. Older, “legacy-based” networks present serious limitations to VoIP quality. More importantly, the “last mile” is perhaps the weakest link in sustaining VoIP quality. Old copper-based last mile subscriber facilities can negatively affect data throughput. And, while this condition is rapidly being overcome in the US, as well as the rest of the industrialized world through the use of ADSL, cable modem and direct-to-home FiOS, it remains a chronic condition in developing countries.
It is in the “last mile” that NGT has an edge over legacy-based cable or first generation wireless broadband networks. NGT’ networks employ the latest wireless broadband “multi-tier” technology, and are specifically designed and built to support sustained IP-based services such as VoIP. Since NGT controls the entire network from the origination point, through to the last mile, it has a high degree of control over the quality of the service delivered over the network.
Estimate Monthly Traffic on the LaSilkee Network
The LaSilkee network is a modern IP-based network, and can be seamlessly expanded to provide a high level of voice and data service to end users throughout NGT regional footprint.
The attached chart (PDF) shows the estimated traffic that can be generated over the LaSilkee network on a monthly basis:
It is felt that these are very conservative estimates. The use of VoIP in Jordan for international calls has more than doubled every year since 2000. For example, the total number of international minutes currently generated or terminated in Jordan on a monthly basis is 110,975,205.
It is projected that, at the end of its first full year of operations, NGT will capture a total of 3,010,000 minutes of international VoIP traffic. This is just slightly less than 3% of the market.
CarrierTraffic Projections (PDF) |
