SmartCompany50 rank: 5
Revenue: $6.85 million
Growth: 106.92%
Founders: Andy Fung, 57; Rene Sugo, 36
Based: New South Wales
Employees: 42
Industry: Communications
Website: www.mynetfone.com.au
Convincing people that voice over internet (VoIP) is a viable and long term service proposition was the big challenge that faced founders Andy Fung (right) and Rene Sugo (below) when they launched My Net Fone in 2004.
"We started the business because we recognised the huge potential of telecommunications business and the shifting of technology to VoIP. VoIP, broadband and IP (that is, internet) applications are the future of communications and multi-media," Fung says. "We learned that the business must be creditable and needs to build a track record; that you ‘do what you said you'd do'."
It hasn't been easy. While some people love VoIP, others find it complicated and unreliable.
"Building a track record is a long term thing - day in and day out," Fung says. "It's not a flash in the pan, here today and gone tomorrow."
The company did an IPO in May 2006 and is now listed on the ASX. It now has revenue of $6.85 million, up from $3.28 million in 2006-07. Fung says the goal is to become profitable, to reach $15 million turnover by June 2009 and to have 100,000 paying customers (up from 60,000 now).
"We have a board of experienced directors and we (the two founders) have had previous start-up experience with another company, Symbio Networks, which is still operating. Experience counts a lot, especially when you're moving in uncharted territory," Fung says.
The company's online strategy has been crucial to its success with more than 80% revenue coming from the web, Fung says. "We do e-marketing and e-commerce as well as providing self-support, top-up and provisioning facilities to our customers on-line. Our website is more than just providing information. It integrates closely to our marketing and e-commerce strategy and provides a full life-cycle of support and customer service to our customers."
He says customers return and visit the website frequently to top-up their account, view their call history or change their profile detail. "We constantly interact and engage with our customers. We believe our website is an important tool for us to build brand recognition, loyalty and on-going relationships with our customers."
He says the online strategy has helped reduce and control costs and savings have been passed on to customers in the form of cheaper call rates and better value. "We target consumers and enterprise users who are comfortable with broadband, increasingly running their daily business online via the web. We think of ourselves as a new generation communications provider in the era of internet IP," he says.
Fung says the telecommunications industry is undergoing a fundamental change to IP technology and is converging with the IT industry. "Everything will be IP - voice, data, mobile and TV. This wholesale change is throwing up challenges as well as opportunities," he says.
"The company's next big move is to provide ADSL2+ broadband service in addition to VoIP. We'll then evolve to become a convergent provider of voice and data," he says.
