Scottsdale, Arizona, December 2, 2004: The exploding North American VoIP market place is set for a shakeout in 2005 for some incumbent micro-cap startups, according to VoIPAction.
VoIPAction maintains a Directory of VoIP Service and Equipment Providers, allowing it to track the developing industry in North America. Throughout 2004 some notable events occurred including thirty venture capital firms backing mostly private VoIP start-ups, Vonage secured additional major financing to execute it’s business plan ($200 million so far), and 20 Nano Cap/Micro Cap public companies arrived on the VoIP scene.
On November 30 2004, the average share price of these 20 VoIP Nano Cap/Micro Cap public companies had increased to $1.29 (+116%) from $1.11 on August 30 2004.
These gains were mostly supported by just three of the companies; Delta Three, Net2Phone and Packet8 (the stronger funded and better established companies) who were up an average of +141%, from $2.40 to $3.37 a share.
Subtracting these three players from the mix, the other 17 companies grew by an average of +104%, from $0.88 to $0.92 a share.
Chris Lewis, Founder of VoIPAction said: “The key issue for these smaller companies is how to survive and grow their business models when existing competitors are already there in force and major players like the cable companies and telcos are set to enter the market in 2005”.
“VoIP is already a commodity business in pricing terms, so building Competitive Advantage by concentrating on niche markets or by product differentiation is critical to the success of the smaller entities. We are starting to see more product innovation from VoIP companies who realize that they cannot compete with the big guys simply on the price of a Calling Plan, and this sets the stage for an exciting industry in 2005. Smaller public companies face the dual challenges of growing their business in a fast-moving and competitive market while raising sufficient capital to execute properly”.
The stock symbols included in the data analysis were BESC.OB, CMDZ.OB, COVD.OB, DDDC, DLGI.OB, DTIX.OB, ECUI.OB, EGHT, GTEL.OB, INFL.OB, ITUI.OB, NTOP, NTTL.OB, ONTC.PK, SONS, TGLO.OB, VOCL, VOII.OB, VPMD.PK and YPIL.PK.
About VoIPAction (http://www.voipaction.com)
VoipAction provides simple descriptive information for consumers and small businesses to help them learn more about VoIP, how it can save them money on long distance and international phone calls, and the many Advanced Calling Features that are now available by switching to VoIP.
The web site also provides information tools that help VoIP Companies connect with each other and with the media, including the VoIP North America Directory of Service Providers, Carriers and VoIP News Sites, a free VoIP Industry Kit for journalists and news writers who are interested in developing articles on the industry, and a free 17 page VoIP Learning Guide.
Contact VoIPAction: Michael McCarthy
Palm Beach, Florida