Taking Australian Telecommunications into the Cloud

Transcription

1 Taking Australian Telecommunications into the Cloud My Net Fone Limited Annual Report 2012

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3 Contents Board of Directors Letter from our Chairman Letter from our CEO About the MyNetFone Group Competition & Leadership Introduction to MyNetFone MyNetFone Products & Services Introduction to Symbio Why Symbio? Symbio Services Case Studies In the Press Directors Report Corporate Governance Statement Consolidated Statement of Comprehensive Income Consolidated Statement of Financial Position Consolidated Statement of Cash Flows Consolidated Statement of Changes in Equity Notes to the Financial Statements Directors Declaration Auditor s Independence Declaration Independent Auditor s report ASX Additional Information Corporate Information

4 Board of Directors Mr Terry Cuthbertson B. Bus., CA Chairman A Chartered Accountant, previously partner at KPMG with extensive corporate finance expertise and knowledge. Also Director of S2 Net Ltd, Montec International Ltd, Austpac Resources N.L., Mint Wireless Ltd, South American Iron & Steel Ltd, OMI Holding Ltd, Sun Biomedical Ltd and Malachite Resources Ltd. MNF Director since March 2006 Mr René Sugo B.Eng. (Hon) Chief Executive Officer Extensive experience in telecommunications. Formerly Technical Director of Lucent Technologies. CoFounder of Symbio Networks Pty Ltd. Mr Michael Boorne Electronics Eng. Dip. NonExecutive Director A successful entrepreneur with extensive track record in combining technical expertise with commercial and corporate experience. Founder of Sprit Modems and Mitron Pty Ltd and previously a Non Executive Director of Netcomm Ltd. Also Director of Boorne Management Pty Ltd and Earglow Pty Ltd. MNF Director since December 2006 Ms Catherine Ly B.Bus., CPA Chief Financial Officer Company Secretary since July 2006 MNF Director since March 2006 Mr Andy Fung B.E. MCom NonExecutive Director Mr Sugo Extensive experience in telecommunications. Formerly Director of Business Development of Lucent Technologies. CoFounder of Symbio Networks Pty Ltd. Mr Boorne Mr Fung Mr Cuthbertson MNF Director since March 2006 Ms Ly

5 3 Letter from our Chairman Fellow Shareholders, It is with great pleasure that I present to you the 2012 full year results. It has been another terrific year for the MyNetFone Group with some major achievements and solid financial results. Our consolidated group revenue increased to $38.3 million with a significant contribution due to the acquisition of the Symbio Group. Our EBITDA rose by 308% to $4.4 million and our NPAT was up 205% to $3.1 million, yielding an Earnings Per Share of 5.6 cents. The Company ended the year with a strong balance sheet, no bank debt, and a cash balance of $6 million. The success is attributed to solid growth in high margin retail and wholesale hosted voice services. The outlook of the business is very positive with enormous potential in all market sectors Residential, Small Business, Enterprise and Wholesale telecommunications services. This solid performance has allowed the board to declare an annual dividend of 2.3 cents per share fully franked (an increase of 176% over the previous year). The dividend is consistent with our track record over the past several years. Achievements During the year MyNetFone once again lead the market with its innovative products Virtual PBX MyNetFone deployed its 2000th Virtual PBX customer (up from 1000 just a year ago), NBN MyNetFone has been certified as an NBN retail and wholesale aggregator, and has already commenced sales and deployments to new NBN customers, Acquisition of Symbio Symbio has brought into the group a great capability and complimentary business models which have been successfully integrated and leveraged for a great result, Number Porting Symbio has ported over 65,000 numbers to its network in the last 12 months showing the great success of the new number porting software which was developed internally, this demand is expected to grow in 2013, Hosted Services Symbio has grown its hosted services business significantly and with the upcoming NBN initiative it is well placed to capitalise on this once in a generation event. The year culminated with the announcement that MyNetFone had been selected by the Tasmanian Government for its Enterprise SIP Trunk product, to provide its voice carriage services to the public network. This decision followed a rigorous trial and tender process in which MyNetFone demonstrated its ability and flexibility to deliver on large scale projects in a short time frame. I am pleased to say that the project is progressing on schedule, and initial services are schedule to deploy in November 2012, with full production commencing in January This project is very long term with extensions of up to 10 years, which will provide a great foundation for MyNetFone s enterprise business moving forward. The company is now actively seeking additional enterprise and government business going forward and we hope this will grow into a considerable revenue stream for the group in the future. The Future At MyNetFone everyone is very excited about the future. There is great excitement within the ranks, and a tremendous feeling of optimism and enthusiasm for what we can achieve in There are several large projects and initiatives underway which will be completed throughout the year and start to deliver new products and services, and in turn new revenue and profit growth.

6 4 The company will still continue its focus of voice centric applications and services hosted on its proprietary software systems. Work continues to upgrade and enhance our value added applications with new features and in turn derive additional revenues. We hope to be able to announce some more great news in the near future. On behalf of the board, I would like to take this opportunity to thank all the staff and the management team in achieving another very successful year. The board will continue to provide its full support to the team to ensure the company maintains its momentum of profitable growth and continues to deliver more amazing achievements and strong performance. I would also like to thank my fellow colleagues on the Board of Directors, and the Management team for their hard work and dedication in making MyNetFone one of Australia s leading communications service providers. Most importantly I would like to thank our many shareholders for their continued and loyal support. We look forward to a very exciting year ahead which I am sure will be rewarding for all of us. Terry Cuthbertson Chairman

7 5 Letter from our CEO Dear Fellow Shareholders, Our business has had a great year on many fronts. As our chairman has outlined we have achieved a very solid financial result, which was the outcome of a lot of hard work, forward planning and diligence. This year is also my first year as CEO of the company (I was formerly Chief Technical Officer), and it has been a challenging and rewarding time. We have had several other firsts as a company, for example winning our first Government contract and paying our first fully franked dividend to name just a couple. Diversified Business This year has seen the acquisition and consolidation of the Symbio Networks Group our long time supplier of platform and technology, and a business which I have been associated with for 10 years. This has proven to be a great investment by the company, providing an immediate financial benefit in terms of margins and profits, as well as improving the company s profile with additional business models, revenue streams, assets, intellectual property, technology, and most importantly a great team of people. Our business now has four key market segments, all of which complement each other. Our focus is centred around the essential human need for voice communications, but we have managed to diversify the business by addressing these four complementary segments Wholesale, Managed services, Residential and Business & Enterprise. This diversification gives the group stability as well as more opportunity for growth and innovation, especially as the acquisition of Symbio will allow us to better serve the two new strategic market segments of Wholesale and Managed services. Intellectual Property The company now has a large pool of intellectual property in the form of software source code, network design technology and processes & systems which give us real strategic value. Our core product is voice communications, and for this the company is not a reseller dependant on any one host network we are the network; the company is not dependant on reselling any one product we are the product; and the company is not dependant on any one technology supplier we are the technology. These attributes, combined with our experienced people, means we can create new things and evolve existing things to adapt to the market, and thus find new opportunities and revenue streams. Having such a capable internal repertoire of intellectual property and the experienced resources to extend it even further is a rarity in the Australian communications industry. Network Assets and Capabilities A key part of our capability to deliver our services is our fantastic voice network. This network was built inhouse by Symbio over the past 7 years, and has been steadily growing and improving throughout that time to provide an important service differentiator. The network is focused on what we do best voice communications. We have avoided distractions from noncore areas, or capital intensive areas, and as such we outsource those to other reputable providers in the industry; for example colocation, transmission and internet access. Our network consists of the hardware and software systems required to carry massive volumes of high quality voice traffic around Australia and the region, and add value to that traffic through market leading innovations, such as Local Number Portability, Mobile Number Portability, cloud based managed services, voice and fax based applications, billing and cost management systems, and provisioning and customer management systems.

8 6 Our network is extensive and robust. Currently we are connected to all Tier 1 voice carriers in Australia, and 17 international Tier 1 voice carriers, as well as a multitude of smaller carriers and service providers. Our network infrastructure covers all of Australia, New Zealand and Singapore, giving us scale and reach which is often underestimated by our competition. The Service is the Key The world of communications is changing and the people who use communications are changing too. Technology is providing many additions to voice communications such as social networking, , and the internet in general. The market is providing alternatives itself such as mobile substitution, and better broadband to further enable more technology change. It is a self feeding cycle which means that traditional providers must adapt quickly to ensure their future success. Our approach to this changing market is to recognise that the service itself is the key. Voice communications are here to stay, and we all need access to a system which allows us to call others when we need to and get immediate two way conversation. This means we all need access to a service. That access is currently controlled by phone numbers despite many other alternatives, phone numbers are still the single most reliable way of getting in contact with another party and they are here to stay for at least another 10 years or longer. In fact I m yet to hear of another alternative, proposed or otherwise, that can replace the ubiquity and utility of a phone number. To get phone numbers, people and companies need a phone service, and this is where technology is having the biggest impact. Mobiles are the service that will dominate in the personal space. When you call a mobile number, you are calling a person; when you call a landline number you are calling a place! That is the new mindset that has permeated society, conscious or not. For businesses and governments the needs however are different. Their phone numbers exist to provide a gateway for people outside of their organisation. Despite web sites, and online shops, there is still that need to have a voice channel for communications. This voice channel is going to get more and more sophisticated, and that is where the MyNetFone Group comes in. These phone numbers no longer represent a piece of copper into a building; they exist in their own right as the identity of the business, as the gateway into the business, and as the service platform. MyNetFone allows consumers and businesses to create a phone service that meets their needs it follows them regardless of location, distributes calls intelligently amongst their sales team, converts voice messages to s for instant delivery, even converts faxes to documents delivered directly to the recipient of the fax. All these features, combined with the ability to bring your existing traditional copperbased phone number into this new world of flexibility and innovation, is what MyNetFone is all about. MyNetFone is creating the cloud where future phone services will be developed, hosted and delivered, and we value the continued involvement of all our stakeholders in this incredible journey. Rene Sugo CEO

9 About the MyNetFone Group 7 The MyNetFone Group (My Net Fone Limited) is a newgeneration IP telecommunications provider delivering services to all levels of the market including wholesalelevel hosted VoIP Managed Services and Wholesale Carriage, and retaillevel voice & data services for Enterprise/Government, Business and Residential customers. The Group s strategy is to embrace the internet as an enabler of communications and valueadded services, set to replace the traditional copper phone network. The concept is to deliver a voice service and associated features over the internet, which can be simplified and selfmanaged online without the need for extensive onsite equipment. This moves the focus of communications away from physical equipment and copper lines, and into the cloud where features and functions are hosted on the MyNetFone network, without the need for the customer to maintain expensive and complex infrastructure. The Group is comprised of 2 operating divisions targeting different levels of the communications market: MyNetFone at the retail level and Symbio Networks in wholesale. Symbio Networks, the owner of Australia s fifth largest interconnected VoIP network, is a new addition to the Group and is the first acquisition made by the company. This acquisition has immense strategic benefit and completes the picture, allowing the MyNetFone Group to service all levels of the telecommunications market, with each sector delivering a competitive advantage and strategically supporting the others. MyNetFone Group TM Residential Business Enterprise & Government VoIP Managed Services Wholesale Carriage Over 95,000 customers Recognised for reliable, good value service Local Australian Support team Strong growth in DSL & NBN markets Marketleading Virtual PBX service with over 2,000 deployments Scalability & Flexibility Valueadded services including number porting, 13/1300/1800 numbers, Virtual Fax and more Vendor agnostic Enterprise SIP Trunking Multiple vendor certifications (e.g. Microsoft, Avaya, Panasonic and others) Enterpriselevel SLAs Latest customer the Tasmanian Government Over 250,000 SIP Endpoints hosted on network Over 400,000 DID numbers hosted on network Number Porting via unique LNP checker Hosting of DIDs and 13/1300/1800 numbers Carriergrade Interconnects with Tier 1 domestic & international providers Carries over 2 Billion minutes annually Servicing 90 wholesale customers & carriers

10 8 Relationship between Market Segments MyNetFone retail services, along with numerous other Symbio customers, utilise Symbio s managed VoIP solutions (such as VoIP, Virtual PBX and SIP Trunking), which in turn generate wholesale voice traffic minutes. Services Platform Customer needs & insights VoIP Managed Services Meanwhile feedback from MyNetFone s endusers provides insights into customer needs, allowing Symbio to develop innovative new features that make Symbio services stand out, and attract more and more providers to use the Symbio VoIP network for managed services and wholesale carriage. This selfreinforcing cycle provides a competitive advantage that is practically impossible to replicate for new entrants into the market and sets the MyNetFone Group apart from the competition. Residential Business Enterprise Government Minutes Traffic VoIP Carriage Minutes Traffic Wholesale Carriage Network & Scale The MyNetFone and Symbio operating divisions address four major market segments which contribute almost equally to the MyNetFone Group Gross Margin. Thereby, The Group is an internally diversified business, wellpositioned to not only overcome market changes or irregularities, but to take advantage of them. Gross Margin Contribution by Segment MyNetFone Group Major Market Segments Symbio Wholesale 30% MyNetFone Residential 25% Symbio Wholesale MyNetFone Residential Symbio Managed Services 17% MyNetFone Business & Enterprise 28% Symbio Managed Services MyNetFone Business, Enterprise

11 9 Competition & Leadership The MyNetFone Group is actively competing against traditional Tier 1 communications operators and is leading the charge in growth and marketshare gain among other newgeneration providers. The company s 2012 win of the Tasmanian Government telecommunications tender, in which the Government decided to switch to MyNetFone s IPbased cloud communications model and away from the largest traditional telco, is a big step in proving to the market that the newgeneration services have matured and reached the level of reliability suitable even for typically conservative organisations. While the telecommunications market is undoubtedly very competitive, the MyNetFone Group has a firstmover advantage compared to any newcomers into the cloud or hosted communications market. A number of factors contribute to the continuing dominance of the MyNetFone Group in this space: Time to market It takes over 2 years for a company to deploy a new national carrier network. MyNetFone Group s wholly owned subsidiary Symbio already owns Australia s largest interconnected VoIP network and is therefore at least 2 years ahead of the competition in this space. Costs The costs associated with the deployment of a national voice network are prohibitive for most newgeneration telecommunication providers, while the MyNetFone Group has already invested and recovered the costs and is operating profitably on its own national voice network. Intellectual Property The MyNetFone Group has invested significantly in developing intellectual property resources through building its own proprietary systems for Local Number Porting (LNP), Global Routing System (GRS), Operational Support and Billing Support Systems (OSS/BSS), SONAR and others. With marketleading systems already deployed and revolutionising the telecommunications landscape, the Group is so far ahead of the competition, that it is well positioned to grow market share and resell access to these unique systems to other providers. The Group s success is evident in the numerous awards won for growth, financial performance and service innovation.

12 10 Introduction to MyNetFone MyNetFone is Australia s leading provider of hosted voice and data communications services for Enterprise/Government, Business and Residential sectors. The company has a reputation for quality, value and innovation, having won numerous awards including the Deloitte Technology Fast 50 (2008, 2009 and 2010), PC User Product of the Year (2005), Money Magazine Product of the Year (2007) and many others. MyNetFone s commitment to all aspects of quality and value is reflected in the company s mission: MyNetFone strives to deliver the very best possible customer experience, value for money, and quality services in Australia compared with any other provider. Services in Operation Since being founded in 2004 and listed on the ASX in 2006, MyNetFone s highquality, easy to use voice service has ensured the company achieved fast growth. The recent expansion of its service offering to include broadband data, and the move into the corporate and government telecommunications market have further consolidated the company s position as the leading newgeneration telecommunications provider. The company has achieved spectacular organic growth, initially through the expansion of its Residential customer base, then addition of SME Business customers, and subsequently the move to Enterprise and Government customers. Most recently, the company has won the Tasmanian Government voice carriage project, which proves that its innovative IP communications services provide the reliability, flexibility and scale that make it a viable and often superior alternative to traditional landlines.

13 11 MyNetFone Products & Services MyNetFone provides 3 levels of services tailored to the needs of Enterprise/Government, Business and Residential customers: Enterprise/Government and Business services are supported by SLAs (Service Level Agreements) Enterprise plans cater to organisations requiring 30+ lines, often with redundancy, dedicated data links and other additional services Business plans focus on the 230 line market, with data plans and additional services Residential services provide up to 2 voice lines, ADSL and NBN data plans Virtual PBX Enterprise/Government Business MyNetFone s Virtual PBX is an online phone service delivering the features and capabilities of a PBX phone system without the need to buy and maintain expensive PBX hardware. It is the ideal solution for businesses of any size, at any point in their life, whether they are starting a new business, or existing businesses that are expanding or moving offices and want to leave their old PBX behind. The system delivers the features and benefits of big business phone systems with the simplicity and flexibility of a newgeneration cloud solution. With recent growth showing a 50% increase in uptake in the past 6 months, the system is proving to be a strong challenger to traditional PBXs. No PBX equipment 2 to 40+ lines Unlimited number of users Virtual B MultiLocation Offices Managed through Online Portal Enhanced Services Features include Auto Attendant (IVR), Hunt Groups, Music on Hold, Follow me redirection, Voic & Voic to , Caller ID Presentation, Time of Day Routing, Direct in Dial (DID) and special service 1300/1800 numbers, video calling and more. MyNetFone works to continually expand the capabilities and features of the system to maintain leadership in the hosted or virtual PBX market.

14 12 SIP Trunking Enterprise/Government Business MyNetFone delivers flexible and costeffective SIP Trunking communication solutions that leverage a company s existing hardware investments to save up to 60% off their existing communication costs. SIP Trunking is a complete SIP communications solution for incoming and outgoing calls, often combined with additional MyNetFone services such as number porting, making switching to IP communications easy. SIP Trunking integrates seamlessly with approved IP PBX systems from the following brands: With SIP Trunking, companies are futureproofing their communications, as the service has the flexibility to grow with the company extra lines can be added simply by upgrading the voice. SIP Trunking is also ideal for multilocation offices, as calls between multilocation offices are free if both offices are on the MyNetFone network even internationally. SIP Trunking with Microsoft Lync SIP Trunking connects a company s Microsoft Lync Server to the public phone network over the Internet, enabling a business to capitalise on the full range of Lync call features, while reducing communications expenditure. MyNetFone is the only SIP Trunking provider in Australia officially certified to interwork with the Microsoft Lync Server MyNetFone also became a Microsoft Partner in 2012 by achieving the Microsoft Silver Communications Competency with Microsoft. ISDN Primary Rate Replacement Enterprise/Government Business MyNetFone provides a complete ISDN Primary Rate Replacement service that allows enterprises to significantly reduce their communication costs without changing their entire phone infrastructure. The service is deployed on the enterprise premises and eliminates costly PRI call costs and line rental by routing all outgoing calls via the internet. It can be connected to any PBX with primary rate capability, helping companies leverage their existing infrastructure to maximise the return on investment. This allows companies to simply replace their existing carrier s Primary Rate Service with MyNetFone to take advantage of low call rates and charges, saving up to 60% off the communications bill.

15 13 Additional Business Services Ethernet Broadband Enterprise/Government Business Ethernet broadband delivers a fast and reliable broadband connection that is scalable, flexible and costeffective. MyNetFone s ethernet broadband plans are affordable and can help improve an enterprise s productivity and performance. Ethernet broadband is ideal for companies requiring high speeds for data applications such as running multiple voice lines, VPN and web hosting. Indeed, the service is ideal for channeling MyNetFone voice services, with full Quality of Service (QoS) configuration to prioritise voice traffic and ensure excellent voice resolution. Number Porting Enterprise/Government Business Residential A phone number is now an indispensable part of any business, and MyNetFone allows business & residential customers to keep their phone number when switching to our services. Once the number is in the cloud on the MyNetFone network, the customer can take it anywhere whether they move interstate, out of area or even overseas, they can still retain the same phone number. MeetMe Conferencing Enterprise/Government Business Residential MyNetFone s MeetMe Conferencing service allows up to 30 participants from around the world to be joined in a conference call. This hosted service makes it easy to share information and bring an organisation, suppliers or clients together, by communicating in the cloud without having to spend time and capital on travel. The MeetMe Conferencing service can be accessed on a casual basis or upgraded to a monthly plan for even better value. Participants can dial in from almost anywhere in the world using Overseas Local Access Numbers or from anywhere Australiawide for the cost of a local call using Toll Free and National Numbers. Virtual Fax Enterprise/Government Business Residential MyNetFone s Virtual Fax service (also known as hosted fax) delivers faxes directly to a nominated address as PDF documents and sends faxes directly from the user s computer no need for printing, making it the ideal cloud based service. Best of all, the Virtual Fax is never busy, so customers can receive multiple faxes at once. Customers can move their existing fax number to MyNetFone with number porting or get a new number. MyNetFone can even provide multiple fax numbers so each member of staff can send and receive their own faxes. Special Service Numbers Enterprise/Government Business Residential MyNetFone provides Special Service 1300, 1800 and 13 numbers. Customers have the option of porting their existing numbers to the MyNetFone network, or getting new numbers. These Special Service Numbers offer several benefits for businesses including: gives a business a professional image; demonstrates a focus on Customer Service, by making it more economical for customers to call the company; makes relocating easy, as the company does not need to reprint promotional material with new numbers, helps a business expand outside its local area by overcoming location prejudice of potential callers; and provides a single, national point of contact for businesses of any size.

16 14 Residential VoIP Residential With preconfigured VoIP Adaptors and VoIPenabled phone handsets, MyNetFone makes switching to VoIP easier than ever. The company was the first to make VoIP so userfriendly that even nontechy mums & dads could make the switch, which won MyNetFone the PC User Product of the Year Award in Since then, MyNetFone has seen strong uptake of the VoIP service by residential customers around Australia. This growth has been bolstered with the introduction of number porting, allowing customers to keep their phone number when making the switch from traditional landlines. ADSL Business Residential MyNetFone offers a choice of Naked ADSL2+ or traditional ADSL2+ internet connections and delivers a low contention, high quality service to Residential and Business Customers. ADSL2+ type connections are the entrylevel services for making the switch to VoIP, providing sufficient bandwidth for excellent quality voice delivery. NBN Business Residential The roll out the of the National Broadband Network (NBN) is underway, giving Australians a choice of provider, internet speed and even associated phone service. MyNetFone s NBN plans give customers flexibility to combine the speed they want with a data quota that suits their needs, by adding Data Boosts to any of our NBN plans. MyNetFone sees the NBN as an enabler, giving more consumers and businesses access to reliable internet speeds which are in turn ideal for combining with VoIP.

17 15 Introduction to Symbio Symbio Networks is Australia s largest supplier of VoIP Wholesale and Managed services, providing network operators with proven IP communications solutions and the ability to scale and evolve to make the most of this fastgrowing market. Symbio is also a carrier in New Zealand and Singapore, with interconnects to major providers in those regions and a network presence that allows the company to connect to local customers there. Founded in 2002, Symbio has been delivering hosted VoIP Managed services from day 1, long before the cloud hype made everyone else try their hand at hosted services. With Australia s fifth largest fixed interconnected VoIP network, carrying over 2 Billion minutes of billed voice every year and growing at 30% per annum, Symbio has what it takes to deliver high quality, reliable, marketleading VoIP services and solutions. Symbio s commitment to innovation ensures continuing futureproof dominance at the forefront of the Australian telecommunications industry. SIZE Australia s fifth largest fixed voice interconnected network CAPACITY Carries over 2 Billion minutes of billed voice every year RELIABILITY 99.99% uptime guarantee 10 years experience Part of the ASX Listed MyNetFone Group While wholesale voice is part of the Symbio business, it is not just a minutes company. Symbio provides innovative hosted software & VoIP Managed Services that deliver valueadded benefits, giving providers an edge over their competition and allowing them to differentiate in the marketplace. The two aspects of Symbio s services are, in fact, mutually beneficial. The large national network developed to handle wholesale traffic is crucial in enabling Symbio to develop and offer featurerich, innovative hosted VoIP Managed Services. Meanwhile, the hosted Managed Services help generate the minutes traffic and achieve scale. Thereby Symbio has a selfreinforcing, sustainable operating model that will be further fuelled by increasing demand as more businesses switch to IP communications. The company s mission sums up the drivers that make Symbio excel: The Symbio Group aims to be a leading provider of high quality, high value, hosted services and solutions; delivering value and empowering its wholesale customers to build new high value revenue streams for residential, business and enterprise consumers.

18 16 Why Symbio? Until this year, MyNetFone relied on organic growth and has achieved a stellar record including winning several Deloitte Technology Fast 50 and 500 awards as one of the fastest growing companies in Australia and the Asia Pacific region. The MyNetFone Group achieved this by using the Symbio network, infrastructure and hosted services from the outset. Therefore the acquisition of the privatelyheld Symbio was a natural strategic progression, allowing MyNetFone to secure access to the services and acquire a national VoIP network before any competitors had the same idea. The Group is now able to address both retail and wholesale markets, reaping immediate benefits on 2 levels and is in a position to realise further competitive advantages over time: Symbio adds strategic capabilities to MyNetFone National carrier interconnected network Industry changing Local Number Porting capabilities Inhouse product development powerhouse with a 10 year success record in research & development Symbio brings huge tangible benefits Increase in gross revenue thanks to Wholesale and Managed business models Positively accretive earnings from outset Strong cash flow and balance sheet Reduced costs for service delivery and new product innovation Massive scale in network operations and deployment capabilities

19 17 Symbio Services Symbio provides 2 levels of services: VoIP Managed Services and Wholesale Carriage, with each service type falling into one or both of the following categories, depending on the requirements of the customer. VoIP Managed Services Symbio Networks has over 10 years experience in delivering marketleading VoIP Managed Services that are a seamless addition to any provider s network solution. Symbio has always believed in a building block approach to solutions that maximise flexibility. Providers choose Symbio for either a specific service to complement their own capabilities, or a combination of solutions that help them differentiate in a competitive market. Wholesale Carriage Symbio is Australia s largest VoIP carrier. The Symbio network is directly interconnected with all of Australia s major traditional carriers and 17 International Tier 1 carriers. The network is already servicing 90 carriers and service providers with over 250,000 Endpoints and 400,000 DID numbers hosted directly on the network. In addition to Australia, Symbio is also a carrier in New Zealand and Singapore, with network presence and interconnects to major providers in those regions. Offering flexible connectivity via SIP or TDM, Symbio enables customers to choose the technology that suits them best. Symbio s 10 year expertise in IP technology allows the company to deliver high quality, valueadded services to global carriers and emerging providers. Symbio s services include: Call Termination for Voice & Fax VoIP Managed Services Wholesale Carriage Domestic Symbio s next generation IP core network preserves the quality of the call and terminates it at the point closest to the receiver. Our Global Routing System (GRS) fully integrates with the Australian public telephone landscape enabling realtime lookup to deliver the call via the highest quality and most efficient path. International International calls are terminated through direct relationships with some of the most respected global Tier 1 communications providers. Fax Symbio supports high volume fax transmission over the internet. The service is proven to be a highly reliable alternative to traditional fax termination. Symbio also offers a customisable Virtual Fax solution as part of its Managed Services. Call Origination VoIP Managed Services Wholesale Carriage Symbio s approach to call origination and number porting focuses on flexibility and removing the constraints imposed by the incumbent carriers.

20 18 Local Number Portability (LNP) Featuring a unique LNP qualification checker and real time updates, there is no better system available in our industry today. Symbio provides fully bilateral number porting across Australia & New Zealand. Symbio also supports out of zone porting, which providers can use to differentiate in the market. Phone Numbers Symbio provides a large inventory of numbers in Australia and New Zealand, and will shortly also be offering International phone numbers. Phone numbers act as the company s or enduser s identity on the voice network and are necessary to be able to receive inbound calls from the PSTN network. Despite all the technological changes and advances, phone numbers are here to stay for at least the next decade or two, and their importance must not be overlooked. While phone numbers might not be exciting, the way they can be used in the cloud on IP Voice networks such as Symbio s, gives numbers a lot more power. Once a phone number is ported away from the traditional copper network and into the cloud, a lot of the old limitations fall away: Location and portability no longer an issue. Endusers can make and receive calls with their number from anywhere, from any device: phone, PC, smartphone and others. Scalability no longer an issue. Once the number is in the cloud and not tied to one landline, suddenly that one phone number can handle thousands of simultaneous calls. The user s phone system is no longer limited by the number of copper wires into the office. Geography no longer an issue. If a business moves from one town to another, or one state to another, or even overseas, the phone number can go with them. Control the control of the number shifts from the traditional phone company to the enduser, offering more flexibility and responsiveness. Using the online portal of a system like Virtual PBX, a customer can control how the number behaves via call routing, diversions and more in real time, 24x7. Special Numbers VoIP Managed Services Wholesale Carriage Symbio directly hosts 13, 1300 and1800 numbers on its carrier grade network and is continually developing onnet and offnet call routing options to help providers add value in the market. Symbio provides customers the flexibility to tailor solutions for different segments of the market, from large traffic users focusing on network stability to smaller businesses requiring smart routing embedded in the number. The Symbio solution includes capabilities from realtime answer point changes, to sequential and simultaneous ring and geographic routing. Symbio sees Special Numbers as a growth area, with significant uptake of these numbers especially by small to medium businesses (SMBs). While Enterprises have benefited from Special Numbers for a while, SMBs have often found the costs and difficult processes associated with setting up and managing these numbers through traditional providers to be prohibitive. The flexibility and selfmanagement tools available through Symbio s platforms make these numbers much more accessible for SMEs.

21 19 SIP Endpoints VoIP Managed Services Symbio s hosted SIP Endpoint services offer reliability and scalability with over 250,000 SIP Endpoints already provisioned on the network and no single point of failure in the solution. With full zerotouch flowthrough provisioning, the platform offers customers a seamless addition to their voice or data products. Symbio s unique realtime billing system bills every call whilst it is in progress. With innovative and unique features such as softlock, destination categories and category control, our platform provides peace of mind against credit risk and tollfraud. The Symbio platform is tailored for Wholesale services with a high level of automation, giving customers full control of all aspects of the network partition through the comprehensive whitelabel solution. SIP Trunks VoIP Managed Services Symbio s hosted SIP Trunk solution increases the addressable market, catering for larger business and enterprise sites. SIP Trunks are typically used in IP PBXs and provide a solution that is both commercially and technically cost effective and scalable. A hosted SIP Trunk enables Symbio s customers to provide a solution to their endusers which removes the barriers to growth found in legacy products and supports network convergence with voice, data and video all on the one common IP network. Symbio currently has over 2,000 hosted SIP Trunks in service on the network and is believed to be the most certified SIP Trunk network in Australia, with a large number of trusted PBX brands tested & approved for interoperability with the SIP Trunking solution. ISDN Primary Rate Replacement Product VoIP Managed Services The ISDN Primary Rate Replacement solution caters to endusers who are not yet ready to implement a complete IP PBX solution in their business. It allows enterprises to significantly reduce their communication costs without changing their entire phone infrastructure. The ISDN Primary Rate Replacement product provides the commercial and technical advantages of the SIP Trunking solution, with the look and feel of a traditional ISDN service. Virtual Fax VoIP Managed Services Symbio s Virtual Fax service enables customers to deliver faxes directly to the enduser s address as a PDF document and send faxes from their computer no fax equipment required and no need for printing, making it the ideal cloud based service. Best of all, the Virtual Fax is never busy, so customers can receive multiple faxes at once. Endusers can move their existing fax number to the Symbio Network with number porting or get multiple new fax numbers so each member of staff can send and receive their own faxes.

22 Case Studies Tasmanian Government makes the switch to VoIP In a significant win for the company, the Tasmanian Government has selected MyNetFone to supply Voice over IP (VoIP) carriage services to the state after a rigorous tender process. The initial agreement term is for three years, with extensions up to ten years, for a total contract value expected to be worth up to $20 Million over the full term. The Tasmanian Government left the traditional incumbent telco behind and made the move to nextgeneration communications technology to improve service levels and enhance productivity. This change is the latest proof that IP communications with VoIP or SIP Trunking has evolved into a viable and often superior alternative to traditional phone services. The MyNetFone agreement with the Tasmanian Government demonstrates that Internet telephony has reached the maturity and scalability to service even the largest public and private sector organisations. The MyNetFone Advantage Some of the major factors that helped MyNetFone win the Government deal are the company s ability to offer seamless transition from legacy systems to IP services and the fact that MyNetFone owns the largest VoIP network in Australia, with interconnects to all Tier 1 voice carriers. The delivery of these VoIP services will be supported by the MyNetFone Enterprise SIP (Session Initiation Protocol) Trunking system, a fullyfeatured, next generation digital trunk service. The SIP Trunk solution will allow the Tasmanian Government to extend communication over IP to employees in all offices, regardless of whether they are located on a main site, at branch offices or even if working remotely. MyNetFone is a young, energetic, innovative company which has proven it is capable to develop services that meet the Government s requirements. This agreement will not only put the Government in a great position to meet the evolving needs of our communities, but will also contribute to the growth and diversity of the local industry with MyNetFone s expanded operations and commitment to the state. We are looking forward to a long and successful partnership with them, TMD General Manager, Piero Peroni said. Network Expansion MyNetFone will invest in additional infrastructure in Tasmania to support the contracted services and to handle additional opportunities in this market. The inclusion of the infrastructure investment is expected to result in an earning accretive outcome in the first year of service. MyNetFone s investments in additional infrastructure in Tasmania will be deployed through the group s whollyowned VoIP carrier, Symbio Networks. The deployment will utilise the company s proprietary intellectual property including Australiandeveloped software such as SONAR OSS/BSS, Global Call Routing (GRS) and management software, and Symbio s unique Local Number Porting systems. Symbio Networks is also one of only a few direct wholesalers looking to make the investment in National Broadband Network (NBN) services in Tasmania, which will give smaller providers who do not have the capability to become a direct NBN Co reseller, cost effective access to this future growth market.

23 Case Studies Embracing the Virtual : Price & Speed Containers Challenge Price & Speed Containers is an Australian business providing a range of services from containers and forklifts to LED screens and mobile bars. As the business expanded and diversified to cater to numerous market sectors and industries, it began to outgrow its existing location. At the same time, the business phone system was getting old and costs were increasing. When the time came for the company to relocate to a new office, IT and Web Manager, Andreas Strauss took the opportunity to upgrade the business communications system, with reliability, costeffectiveness and performance being the key factors of consideration. Solution MyNetFone helped Price & Speed Containers move into the newgeneration Virtual communications world, providing Virtual PBX and Virtual Fax. Virtual PBX delivers 20 voice lines to 30 IP desktop handsets and gives the customer plenty of scope for their phone system to grow with their business they simply upgrade their Virtual PBX plan and get access to additional lines instantly. With plug and play IP handsets provided by MyNetFone, the setup process was simple. For such a large system with over 28 handsets, the set up went very well with little to no downtime Andreas Strauss, IT and Web Manager, Price & Speed Containers Number Porting Price & Speed Containers ported their existing phone numbers to the MyNetFone network using MyNetFone s innovative Local Number Porting system, saving them from having to distribute a new number to customers, partners and suppliers. Virtual Fax the ecofriendly Virtual Fax solution also provided by MyNetFone makes faxing a much easier and more organised process for Price & Speed Containers, with incoming faxes received via and outgoing faxes sent via a computer application. Staff no longer need to monitor the fax machine for incoming orders, look for misplaced faxes or wait for queued faxes to come through if the machine is busy. Benefits Price & Speed Containers enjoys the following benefits with their MyNetFone solution: Easytouse, futureproof phone system with great, clear voice quality. True ownership and management of their phone system with the flexibility to make any changes in realtime via the Online Portal no need to make expensive service calls to a technician. Significant cost savings of up to 75% per month since switching to Virtual PBX. Increased efficiency with included features such as hunt groups, extension dialling, auto attendant and more. Increase in productivity with Virtual Fax all incoming faxes are immediately available in the receiver s nominated inbox and the fax line is never busy, being able to receive hundreds of faxes simultaneously. Plus, there is no need for paper, ink, toner or maintenance. Great service for equally great costs MyNetFone is definitely the way to go for phone systems! Andreas Strauss, IT and Web Manager, Price & Speed Containers

24 Case Studies College goes from 30 year old PBX to the latest SIP solution Challenge St. Mary s College is an all girls Kindergarden to Year 12 College (K2 for boys) in Hobart (TAS) with 870 students and 110 staff. With a tradition of fostering a close relationship with parents as partners in their child s education, St. Mary s College needed reliable telephony to communicate with parents and staff. However, the College s 30yearold PABX system had reached its capacity and could not be expanded into the new Student Resource Centre. They needed a replacement voice solution. The College also recently upgraded its internet to a dedicated 1 GB unlimited fiber optic link and implemented a Microsoft Lync unified communications solution to make the most of the additional bandwidth. The College therefore needed a voice solution that could integrate seamlessly with Microsoft Lync. Solution St. Mary s College chose MyNetFone to provide their telecommunications following a recommendation from the system integration company that had designed their Microsoft Lync solution. SIP Trunking As the only SIP Trunking provider officially certified to directly interoperate with Microsoft Lync in Australia, MyNetFone s SIP Trunk solution enables the College to capitalise on the full range of Lync call features and provides 8 voice lines. MyNetFone worked directly with the college s system integrator to ensure a smooth transition, resulting in rapid setup. There were no real issues even though parts of our system were Australiafirst, from specific technical points of view Paul John Stanners, ICT Manager, St. Mary s College Virtual Fax With a stateoftheart voice and data communications solution in place, it was time to replace the College s old fax machine and its nolonger readable printouts. St. Mary s switched to MyNetFone s convenient and costeffective Virtual Fax service. With faxes received electronically, they can now be stored for future reference and important faxes can be printed on a high quality laser printer if required. Benefits Unified Communications With MyNetFone s SIP Trunking and Microsoft Lync, St. Mary s College now has a perfect and affordable tool for full collaboration via voice, SMS, video and desktop sharing. The College s communications bills are also consolidated into a single online bill for easy administration. Effective Collaboration and Communication Staff are now accessible wherever they are, with calls or voice messages directed to the intended recipient more accurately via mobiles or staff laptops. With a Lync client set up on their laptops, staff can also make calls from anywhere in the College. CostEfficiency St. Mary s College saw immediate cost savings through eliminating redundant landlines and line rental fees. They are also enjoying a 40%50% reduction on their telephony bills with the switch to MyNetFone. Lync running over MyNetFone is a definite way forward in terms of true UC (Unified Communications) collaboration Paul John Stanners, ICT Manager, St. Mary s College