review: mynetfone virtual pbx , page-5

Yes, I do agree that MNF marketing is non existent I think $20K last year. However, I would rather that they be in the financial position they are in now than a $5M down due to extensive marketing.

It appears that the uptake for VOIP accross the board is not that good. ENG showed the way by spending $3.5M PA on marketing and acheived virtually no growth for it's spend. MNF growth has some about thru viral and referral marketing which basically involves a few MNF employees pounding internet forums and making special member offers. They also have an active wholesale dealer base connecting up business clients.

I agree that MNF are lacking by not having a Naked DSL offering and I understand that they will not be offering it anytime soon which is a little dissapointing. I understand that they do not want to make the required investment to be able to offer it and given their lack of marketing it is likely that there would not be a significant takeup in any event. They will however continue to offer and sell regular DSL to business clients.

In terms of MNF being a sound investment for us we can only hope that they continue to grow and meet profit estimates in FY09. So far it looks good however I note that they are beginning to alientate some on the very forums that built their growth in the first place. This is a little distressing as that user base can be fickle and prone to mass change if they are not satisfied.

Business growth for any VOIP company is where the real returns come in spades but the barrier o entry here is the ability to integrate the cliets existing PABX system to VOIP hardware and also the ongoing problem of number portability from exisiting PSTN numbers. This is clearly why MNF are pushing the Virtual PABX as it is a low cost replacement system but it does not solve a problem for a business if they like their existing PABX or demand incoming line portability unless they are prepared to adopt new numbers and use divert or answer messages.

Engin have made a significant move by effectiviely becoming a part PSTN phone company giving them the abilty to port over PSTN numbers and then divert to new VOIP numbers. Combined with their newly setup Naked DSL they should be of concern to MNF particularly if they crank up the advertising again. Pennytel have just launched a radio media campaign in Sydney with competitive rates and GoTalk are also looking menacing with their all in one solution of Naked DSL, Wireless, Mobile & VOIP offerings.

We are used to seeing innovation & spectacular growth from MNF, let us hope that they continue to surprise the market rather than just consolidating their current position and preserving capital as it appears they are presently doing. Alsothough none of us here would argue against prese4rving capital, keeping costs down and working towards a profitable FY09 particularly in this current world market which surely will only continue to degenerate.

Either way, the more companies marketing VOIP colutions the better it is for all VOIP companies in the sector as a whole as it clearly promotes acceptance of VOIP as a legitimate replacement for traditional PSTN lines. When those clients are ready to take the plunge it is simply a matter of who they chose to connect with. Let us hope that MNF pickup some of those clients courtesy of others expensive marketing campaigns!