A Simple Strategy

This VoIP provider claims it's the simplest. Any ISP with a billing system is welcome to join for an up front prepayment for services of $250.

by Alex Goldman ISP-Planet Managing Editor [March 31, 2005]

Update: Simple Telecom appears to have shut down as of July 1, 2005

Sarah Patnode knows that ISPs are ignored by many major VoIP providers. The head of sales at Reno, Nevada-based Simple Telecom says, "it's tough to work with contractors, especially when they want you to spend $100,000 per month. Some large companies refer VoIP opportunities to us that do not fit their customer profile."

Simple Telecom requires an up front prepayment of $250, which most companies can afford. The ISP must have its own billing system. Clients send SIP traffic with G729 or G711.

Patnode says that company is a relative veteran and is financially reliable. "We're a privately funded company. We've been providing services since 2003 and are profitable."

The company gets it all done with a small staff (exact size not disclosed). Though based in Reno, the company's servers are in the expected locations, such as Equinix in San Jose, where bandwidth is readily available.

No sales team
A key efficiency is automated sales. "We have over 100 wholesale customers. We have a lot of international clients who sign up because it's simple. The web interface is our automated sales team," she says.

The company also sells directly to businesses. "We have over 1,000 business class customers for our SimpleConnect service." A free trial of that service, using SIP, is available.

Of course there is the possibility of fraud. Patnode says industry veterans are well aware of the potential problem. "I've been in telecom for a while. I consistently hear from clients who launch new applications. They're pleasantly surprised by the day one activity but then on day two they're surprised at how much of that activity was fraud."

Simple Telecom only accepts $250 up front (companies can provide more through a bank transfer), limiting potential fraud.

The bottom line is quite good. "Some companies pay for huge sales teams, and we're just putting it all through the web."

The company owns and controls its own code, enabling further efficiencies, Patnode claims.

Pay for what you use
The company is accustomed to providing the competitive prices for phone calls to anywhere. A rate sheet is available.

Asked whether a monthly fee plan is available, Patnode explains that the company does not yet offer one. "The consumer has been conditioned to ask for a package deal. We say, 'pay for what you use. There's no contract and no minimums.' We this it's a better deal and we hope they will too."

Patnode is optimistic about the VoIP future. "I've never seen rates go up before in all my telecom years," she says. "In the last month, I've started to see rates go up. It's because of consolidation—many companies cannot handle their debt load. So far, we've been able to stick to our price sheet even in this crazy turmoil."

The strategy is simply about price. "VoIP is a web service and should be consumed like a web service. The consumer should be able to see what's available and make a purchase, and if you don't like it, go to a different provider. If my rates are not as good or if there is a network problem it's all just an IP address and you should be able to switch."

— End