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In reply to: king louie on Monday 14/11/05 08:39pm

good man, the salvos need help closer to xmas.


ENG finally back to where i sold from their reincarnation from MOB to ENG.


i am a little more interested in a few other profitable companies atm but cheering for ENG holders, always good to see people getting ahead.


ENG need to make money before i would get too excited. (and i mean profitable not just revenues) but a neat trade for current longs.

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Speed and persistence widen broadband horizons

By Cynthia Karena

October 11, 2005



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"Be open to change," says Ilkka Tales, CEO of broadband telephone company engin which is delivering net phones to homes and small businesses across Australia. Photo: Tanya Lake



Being persistent and finding opportunities are the keys to building a successful business, says Ilkka Tales, the 42-year-old CEO of engin, the broadband telephone company delivering net phones to homes and small businesses across Australia.


It was 2000 when Mr Tales saw an opportunity in the broadband market. He had just joined Mobile Innovations, a reseller of mobile phone handsets and services under the Vodafone network, when he was entangled in litigation with the network operator. Vodafone refused to pay the dealer for customers over the minimum target they set, crimping the reseller's income.


"I was managing litigation rather than managing a business," says Mr Tales. "I also didn't want to downsize our core loyal staff. So I went looking for opportunities. I had built a broadband base station on top of my house and was looking at wireless technology closely, and looking at how to add value in the broadband market. From this, engin's voice-over-internet product was born."


In May this year, engin won the Australian Information Industry Association's iAwards in the Communications Applications category for innovation in broadband phones. "Engin's momentum has been building across Australia for some time now thanks to the continued high growth in adoption of broadband internet services and because Aussies are realising that there are substantially improved telephone services with massively reduced call rates available," says Mr Tales.



AdvertisementWorking at Telstra in the early 1990s taught Mr Tales the importance of having the right people in the right positions. "People need to be emotionally equipped to handle change. The one constant in life is change. The speed of change today is remarkable. It's all about how quickly technology can be executed. People need to be able to cope with that; they need to be well centred to do it with speed."


Mr Tales learned how the speed of growth can leave scars on a company when he joined Philips Consumer Communications' fast-growing new mobile phone division in 1996. "Managing growth in a rapid environment needs good levels of controls in place and a culture that is results oriented. And it needs good people at the back end. We grew to 15,000 employees in the first four years of business and back down to 4000 in the fifth year. You need good people to stay on top of that."


Never give up, and be prepared to change your product, idea or business model as you get new input, says Mr Tales. "Be open to change and move quickly to implement that change. The only future competitive advantage is implementing change at speed."


He says the challenge in Australia is getting access to venture capital. "Fund-raising to start a business tends to rely on venture capitalists, which don't exist in Australia, except for individuals who personally fund start-ups. You need to have a good business model and access to those people."


Mr Tales says Australia needs to be more involved in the international standards setting process, especially in internet protocol-related business. "The more Australians are involved at the forefront of open standard settings, the more opportunities will arise for product and service ideas."


There is no clarity in how the telecommunications industry is going to be regulated in the area of VoIP technology, says Mr Tales. "The speed of change in the industry is not for the faint-hearted. It reminds me of the mid-'80s when the first PC operating system came into place. We don't see a Bill Gates of the VoIP world yet. That person is probably in someone's garage right now."





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AARNet lights path for VoIP

Andrew Colley


NOVEMBER 01, 2005


AARNET, the national academic research network which is credited with putting Australia on the internet has stepped up to the plate again, this time to accelerate local adoption of Voice-over-IP services.


The non-profit carrier, governed by the CSIRO and a consortium of Australian universities, said it had started working on agreements to connect its private VoIP network directly with those operated by other major Australian major VoIP network operators including SingTel-Optus, Engin and Internode.

AARNet Video and Voice over IP manager Stephen Kingham described many of Australia's VoIP networks as "isolated islands." He said that the research network provider wanted to help Australian VoIP providers to learn how to bypass circuit switched telephone networks (PSTN) and let their customers make calls directly through shared VoIP gateways.


"It's not well understood so we're encouraging Optus, Engin and Internode to get involved in VoIP peering to work with us all on how we do it," Mr Kingham said.


He said that AARNet would report its findings to the Australian Communication Industry Forum and Communications Minister Helen Coonan.


Calls placed between merged VoIP networks would cost less than those that required the assistance of conventional carrier to terminate them on the PSTN.


Engin chief executive Ilkka Tales said that the new peering arrangements "would definitely impact carriers."


Optus, which currently provides AARNet with carriage services connecting its VoIP calls to the public telephone network, was reticent about discussing the peering arrangements publicly.


A source inside Optus confirmed that the carrier had held preliminary discussions the with the education network provider. But Optus corporate affairs refused to comment on the matter.


Mr Tales said Engin was considering a number of requests to peer its network with VoIP network operators and that it had already made to its network to accommodate the interconnect agreement with AARNet.


"We want to be able to facilitate the least cost routing for our customers in terms of making phone calls, especially if they're making phone calls between themselves and other customers on other IP networks," he said.


Mr Tales said that he didn't expect the peering arrangements to lead to a significant jump in VoIP call volumes until next year.


Mr Kingham said that while the peering arrangements would deliver some cost savings to VoIP network operators gaining commercial advantage was not AARNet's primary aim.


"We're Australia's advanced research and education network and we're trying to help Australian vendors to get the technology right or at least help them to get involved in the right technology and we'll learn together. VoIP peering is one of those," he said.


The telecommunications industry is still waiting for Senator Coonan to release its findings on the communication watchdog's report on VoIP regulation despite promising that it was "imminent" three weeks ago.


AARNet said the interconnect agreement would help industry explore methods to distribute network usage tariffs and quality of service issues.


Engin would be testing mechanisms to monitor call volumes to and leaving AARNet's network, Mr Tales said.


_ _ _ _ _


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QUOTE (king louie @ Tuesday 15/11/05 08:27pm)

No need for a rocket scientist. sixth grade math students should be able to sort this conundrum out.


KL that PE is not correct, we have been thru this before. this relates to the settlement MOB received. cash is gone in dividends to MOB shareholders.


ENG are not cash flow positive, therefore they can hardly have a PE that is positive.

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