Vox Telecom takes aim at the consumer voice market with ADSL phone

Vox Telecom's new consumer venture, Vox Telepreneur, combines an attractive product - an ADSL VOIP phone that offers call rebates as well as lower basic telephony costs - with an innovative network-based business model.

“Our vision is to build Vox Telepreneur by creating opportunities for entrepreneurs,” says CEO Doug Reed. “Instead of going the traditional route of spending R10 million on marketing and advertising just to get started, we're distributing that money to our network of dealers as commissions on the call minutes their customers generate. There's a strong feel-good factor in it, and it also helps to differentiate us from the competition in a market where hardly anything is really new. This enables us to venture out into new territories, which is where we've always done best.”

Vox Telepreneur is based on a network marketing model in which dealers aim to build a “network” of dealers, as well as a traditional customer base. “It's not a very well understood model in South Africa and because of its structure it's sometimes confused with a pyramid scheme,” says Reed. “But it's ideally suited to the telecommunications market and has been adopted by several of the largest telcos in the US. It's a great option for entrepreneurs who are just starting out: every product they sell will continue generating revenue each month as people make calls, so there is little or no risk in it and there's no ongoing pressure to sell new products to the same people, which can cause problems.”

Reed adds that the networking system “allows us to sell very effectively within social networks, and also to recruit large numbers of new resellers at very little cost. It also gives us more agility and flexibility and fantastic speed to market to test new products and innovate.”

The Vox ADSL Phone, the first product in the Vox Telepreneur stable, is the first such phone on the local market. It offers reduced costs on national, international and cellular calls, free calls within the Vox network and rebates on incoming calls, all adding up to a compelling offering for consumers, home offices and small businesses that already have ADSL.

However, says Reed, the company is not about to rest on its laurels. “You can't stand still in this market, so we've already added a number of other products such as Vox Mahala for free Internet access, Vox Vaya for free overseas phone calls and a range of GSM products as well. We're also working on the next version of the ADSL phone and software already.”

“Of all the business units in Vox Telecom group, Vox Telepreneur is the one I'm most stimulated by,” says Reed. “Vox's approach to the telecommunications sector has always been innovative and upbeat, and the growth strategy for Vox Telepreneur is no different. “