Following Colt’s decision to exit carrier voice trading and focus on the enterprise side of the segment, we want to share details about Colt’s voice service restructure.
The new focus
Colt will focus its efforts on providing communications services to end customers: enterprises and service providers/carriers. We will utilise our state-of-the-art product portfolio and investments in traditional voice, VoIP, intelligent networking and unified communications.
Why are we stopping carrier voice trading?
We are exiting the low-margin pure carrier voice trading business, because it does not generate a positive contribution to our cash flow and occupies substantial capacity in our network that we could utilise for more profitable voice services.
Enterprise voice is a summary name for all communications services that Colt provide to enterprise customers. Enterprise voice and voice services resold by Operator customers play more to our strengths and differentiation and generate higher margins for our business.
How the voice business will evolve as a result of these developments
In the short term, revenues will decline as a direct result of exiting the low-margin carrier voice trading business. But the cash flows and margins will immediately increase. In the longer term, our voice or communications business will grow again, benefitting from increased market shares in a number of product areas and geographical markets.
Importance of voice business in the wholesale market
The voice business is important to all customers and in all markets. The nature of the voice business is transforming from minutes-based traditional voice to Voice over IP and eventually to voice as an application, that is part of a bigger communications suite (unified communications). Colt is ideally positioned to help enterprises and wholesale players (operators like carriers and service providers) in this transformation in all its European countries.
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