Start Up Rank: 6
Revenue: $5,229,907
Founder(s): James Spenceley, Paul McConnell
Industry: Telecommunications
Head Office: New South Wales
Employees: 15
Website: www.vocus.com.au
James Spenceley and Paul McConnell were fed up with the way they felt businesses were being treated by the wholesale telecommunications sector - so they decided to enter the industry and take care of things by themselves.
For years, businesses had relied on large telecommunications companies for internet access, a situation which resulted in what Spenceley called a "dominated, rigid market".
"Internet capacity to the country had really been dominated by a few incumbent players for a long time, and from a price perspective, we really felt it was a great opportunity to really set the bar a lot higher in terms of what products were on offer."
The company offers wholesale voice and data services to companies in Australia, New Zealand and the US, with an emphasis on what Spenceley calls "the expectation of high quality each time a client deals with any of our staff".
Since Vocus began in 2007, it has grown consistently, with 2008-09 turnover of $5.2 million.
Spenceley believes the company's success lies in its products, which not only differ from those of larger competitors, such as AAPT and Telstra, but according to the company, have undercut their offerings and forced them to change tactics.
Additionally, Spenceley believes the industry "lacked focus" in its products.
"Our entry was probably a little more about focus than anything else. Optus was bought by SingTel, and AAPT by Telecom New Zealand, so you had none of the major providers with control over their networks. Now, we have control over our own product and have more focus on just that service to ISPs, reducing prices."
"Essentially we like the idea that we have shaken things up and provided a 50% drop in the wholesale price of internet to Australian ISPs, which has resulted in significant increases in the download quotas for Australian internet users."
But being the new player in a saturated market was always going to be hard. Spenceley says merely gaining recognition was a challenge.
"Establishing an initial customer base as a new provider was difficult and has taught us to value each of our customers and deliver the service that suits them best."
Spenceley says the two have survived by putting an emphasis on their earliest customers, saying the company has maintained its dedication and commitment to "initial clients". But the business isn't going to stop here, with goals for expansion into new overseas markets in the short-term.
"We've overcome a lot in the last financial year, and have gotten to the point where we can free up senior management to think strategically. So we can think about acquisitions we'd like to make, products other people want to see and other countries we'd like to expand into... perhaps New Zealand or somewhere in the Pacific Islands."
TIP TO ENTREPRENEURS:
"If you treat all your customers with respect and operate a world class network the reputation looks after itself."
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