Global Voice – Launch of Euro-One Network Collaboration

Global Voice announced on June 27, 2007 that it has launched the Euro-One Network. This is a metropolitan fibre network which connects Europe’s leading fibre optic network providers to deliver infrastructure and next generation networking solutions which span countries in Eastern, Western and Central Europe and North America.

The announcement and details can be found on GV’s website located at http://www.globalvoice.com. They are collaborating with e!Net, Exatel, FIBRELAC, Geo, Hybernia Atlantic, JazzTel, Neo Telecoms, Net4Net and Retalit. Each of these companies represent a specific country or region (details within announcement) and are working together to connect fibre cables up to 85,000 km spanning over 350 different cities in Europe and North America. The benefits of this collaboration are immense as it means that EuNetworks (GV) is not limited to serving customers just in Europe alone (bound by its own fibre optic network), but can also partner with the above companies to offer “bundled” solutions to customers. The implications are as follows:-

1) GV is the initiator of this collaboration between the companies and the entire seamless linking up was a success. This would definitely increase the visibility and profile of GV as this important piece of news will be widely reported in newspapers and network publications all over Europe as well as North America. This would propel GV into the spotlight and allow it to market its solutions more effectively.

2) In terms of branding, GV has imprinted its brand name in over 350 cities as it was the initiator of the Euro One Project and the CEO has also commented on the immense value of this news 85,000 km network. This would allow them to further increase their brand equity which is an intangible asset but which will allow them to grab more contracts in future.

3) With this seamless connection, GV can also partner affiliated companies in offering more customized solutions to potential customers. With an expanded network, more customers will be receptive to using the services of Euro One as its connectivity spans 350 cities almost across half the globe.

4) The size of contracts would probably get larger and span a longer period of time as well due to the new customer mix which GV can reach out to, assuming it collaborates with its partners to offer fibre network solutions to its customers. Since the network now covers more cities than GV’s own private fibre networks, this means customers which were previously not within their radar would become potential customers to target. This could significantly scale up GV’s business in the next few years.

5) This is just a guess, but with the increased network connections over Europe and North America, GV could perhaps offer solutions which were previously not available due to the constraints of their own private fibre networks. This would mean that they can expand their scope of services offered and possibly create a new revenue stream.

The above are just some thoughts regarding the launch of Euro One and we must still wait for confirmation from the company itself on whether it can continue to offer good value to customers, and generate good returns for shareholders. At this point in time, it’s easy to get excited over GV as they have been announcing consistent contract wins. What’s uncertain is their cash flow management and ability to return to profitability. I would rather take a more neutral and cautious stance now and adopt a wait-and-see attitude first. There will be more reviews and updates on Global Voice as more news comes up in future.