Posted On: 09/22/2014 5:18:28 PM
Post# of 17653
Virtutone Networks CEO Jason Allen talks to Cantech Letter
We’re in great shape – no further large investments are required in our infrastructure – we can handle substantially more traffic on our network than we are currently serving.
Where is the real sweet spot of your wholesale market?
Latin America and Africa are definitely where we focus our attention. The reason being is very simple. The cost per minute in Gambia is $0.34 whereas the cost per minute in Canada is $0.001 per minute. Assuming we are able to make 5% gross margin on both calls, you can see the effect of each revenue stream on our organization. Both minutes take the same amount of switching, support, sales, and overhead. It was an easy decision for us: we focus on the high cost per minute routes with decent margins.
we are prudent in our financial management and use an escrow account services (Akirix) which provides Virtutone with the required assurances. Akirix guarantees payment from these tier one carriers
http://www.cantechletter.com/2013/10/virtuton...etter1026/
We’re in great shape – no further large investments are required in our infrastructure – we can handle substantially more traffic on our network than we are currently serving.
Where is the real sweet spot of your wholesale market?
Latin America and Africa are definitely where we focus our attention. The reason being is very simple. The cost per minute in Gambia is $0.34 whereas the cost per minute in Canada is $0.001 per minute. Assuming we are able to make 5% gross margin on both calls, you can see the effect of each revenue stream on our organization. Both minutes take the same amount of switching, support, sales, and overhead. It was an easy decision for us: we focus on the high cost per minute routes with decent margins.
we are prudent in our financial management and use an escrow account services (Akirix) which provides Virtutone with the required assurances. Akirix guarantees payment from these tier one carriers
http://www.cantechletter.com/2013/10/virtuton...etter1026/
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