London, UK - - Coms plc (AIM:COMS), the internet telephony service provider, is pleased to announce that it has signed an agreement with Vonage UK Limited to provide phone service to UK small businesses.
"Vonage chose to partner with Coms because of its deep understanding of the small business market, coupled with its flexible and innovative business model and reliable Hosted VoIP Platform," said Simon Burckhardt, Managing Director of Vonage UK. "This is a new business sector for Vonage, and the partnership with Coms provides the right platform for us to serve this market."
Coms has contracted with Vonage to supply a turnkey hosted PBX system that will enable Vonage to sell a multi-line business telephony solution to small businesses with a requirement of up to 10 extensions/lines.
"The agreement we have signed with Vonage provides an opportunity for both companies to broaden our market reach and provide small businesses with a flexible and affordable alternative to traditional phone service," said Dave Breith, CEO of Coms plc. "I am confident that Vonage's entry to the UK business market will be as successful as their residential VoIP service. We are proud to partner with them."
Coms is an Internet Telephony Service Provider (ITSP) that provides Cloud-based telephony services to businesses. The Coms platform not only provides customers with low cost calls but also includes enhanced unified messaging features including call forwarding, auto attendants and voicemail that you would expect to find in advanced office switchboards. In addition, Coms supports the HD voice standard which provides higher quality audio than traditional telephony providers. The Coms service is fully scalable and provided to customers for a low monthly subscription. Coms PLC was founded in 2002 and listed on the London Stock Exchange's AIM market (LSE:COMS) in 2006. Coms is an OFCOM authorised Public Electronic Communications Network (PECN) and a member of the Internet Telephony Service Providers Association (ITSPA).
Sentiment: Strong Buy
Thanks for posting this. Not sure why Vonage chose not to issue a press release. Also, this is interesting/odd given Lefar's SMB related comments at last months Citi Media and Telecom conference. Below is what he said...
"Small to medium business is kind of a different animal altogether. In that one, midsized business distribution is hard and is not a skill set that we have today. It’s an area that we would consider. We certainly would look at it; we think that over the next few years there’s probably going to be some consolidation in that market. We’ve got a lot of $30 million to $100 million revenue businesses and we’ll continue to track and see that market. It’s not one we’re going after directly in the short-term and as you know we already compete in the small office, home office business and we’ll continue to do that with enhancements to our core product selling through retail and retail like channels including our feet on the street."
Vonage may choose to broadly interpret the so-called "quiet period" as removing its opportunity to make the announcement. I tend to disagree with that interpretation, if that's the excuse or explanation. The details here are limited regarding the partnership and any presently related revenues which are few if any at present.
Congratulations Vonage! You signed a deal and can boast all about it on the conference call. Vonage will make some money from the hosted PBX's in partnership with Coms. No one else offers hosted PBX in England do they? Oh wait. Apparently a lot of companies offer that service on that side of the pond. Hmmmm. OK, let's start over. Vonage is going to make big money how?
Way to go Vonage!
This is too important for a FORMAL PRESS RELEASE,...have one of our "high level" posters on the yahoo message board issue this "partnership" announcement to get the word out ASAP......to the 4 people that read the YH MB.
The marketing and PR depts are too busy working on ???? . They spent how many hundreds of millions marketing what ? WHERE ? Boy, these message board posters must get paid millions for their "invaluable" work. Without them, when "MAJOR" progress is made, how else would investors hear what a fabulous company VG is and push up the SP by making large buys.
VG,...the quiet company
I'm going to defend Vonage on this one. The news is worthless. Vonage management knows it's worthless too. Vonage is protecting shareholders by not wasting money on some bogus PR about an unquantifiable maybe. Coms must be desperate for PR and tickled that they actually made a deal with the famous (infamous) Vonage so that's why they ran the ad (meaning PR). And if Vonage runs a PR after all, it's too late and Vonage is just pandering at that point.
If Vonage sells 100,000 PBX lines in England, then maybe VG would issue a PR. I doubt very much there will be many sold at all. Vonage knows this too. Plus Vonage can't talk about the profits per line sold because that's a trade secret. There is no guaranteed income here besides whatever Coms paid Vonage to piggyback the Vonage name on this one.
Coms and Vonage might consider a fish and chips giveaway to the first 100 callers. Coms can make the fish. Vonage can make the chips.
Sounds like Vonage became an over glorified White Label partner. That the two companies decided they needed an excuse for mutual publicity. This is not a game-changer partnership for Vonage. Here are the results five years from now:
'We've got our 200th customer through our Coms partnership. It's taken us 5 years. We make seven bucks a month net per line. Let's see. 200*7*12=$16800*10. We now may an extra let's just call it 168,000K/year.' We will multiply that times ten and pay that to our CEO.
Vonage will make little money from this deal which is a distraction from Vonage's major woes: massive churn, lowering returns per subscriber, debt, limited growth potential, maybe even some of the more serious things mentioned in the response that precedes this. There is no indication VG is making money on this today. Sounds like VG had to pay to even get involved in the first place. What a joke.
This is terrible news
Just ask our Bashers! They will have many reasons.
Not only is it a PARTNERSHIP, but it is an expansion to BUSINESS CUSTOMERS. Itid FORIEGN EXPANSION
This will be terrible, "why isn't VG making money on this today", " The United Kingdom has no guns in their homes", "The future Queen is knocked up" ---Yes they will have a field day.
"10 years ago somebody in the partner company farted - I'm shocked"
They will want to know why VG hasn't announced MORE PARTNERSHIPS
Woe is me what terrible news .....
Yes it is very bad,, the bashers are already making up reasons why. Stupid reasons, but they don't care
After talking about their initiatives for getting Large business customers, at the Citi conference, it seems like they are covering the bases with small business also.
When Vonage reports larger Revenues (they guided them and haven't taken it back) in four trading days at the earnings CC.
When Vonage beats earnings estimates in four trading days.
When Vonage reports HUGE free cash flow in four trading days.
When Vonage reports less Debt in four trading days
And when Vonage reports more news in the next four trading days.
TOP LINE GROWTH
BOTTOM LINE GROWTH
SHARES BOUGHT BACK
WE WILL SEE ALL SORTS OF GYMNASTICS FROM THE BASHERS - or they will be gone.
Let's hope they can come up with more good guidance.