Friday, June 13, 2008
USNT looks to get share of Data Center Profits
We think that a key to success is to focus on one area of the market and really get known as the go-to company in that market. Our market is VoIP-related telecom, one of the fastest growing tech markets. Despite the narrow-sounding description, there are quite a few segments in that marketspace including telecom switching software and data center hosting, both of which are a key component to any company in this market.
VoIP telecom involves servers, many servers, and that requires locating, or hosting them, in a very secure area, with backup diesel generators and huge battery backups. In other words, a telecom company simply can not have their systems go down, so the facility has to be able to keep running no matter what happens with the weather. And not only telecoms, but any business that depends on the uptime of its website is also interested in knowing that their website is safe, secure and will always work. Users simply have no patience for a website or a telephone that doesn't work.
We are fortunate in two aspects of this business as it relates to VoIP telecom and data center hosting. First, Denver is a terrific area for locating a data center, and many large data centers have chosen Denver because of the lack of severe weather, earthquakes or floods. Second, our affiliate companies are already familiar with data centers both as users and, as providers of data center space. Vitelity, for example, pays a great deal of money each month for its data center space, and it out of room.
Out of room is a good thing - it further validates the demand for data center space.
So, although we are in the preliminary stages - looking for space, getting quotations on generators, checking on fire suppression equipment - we hope to make progress on this project in the next year.
VoIP telecom involves servers, many servers, and that requires locating, or hosting them, in a very secure area, with backup diesel generators and huge battery backups. In other words, a telecom company simply can not have their systems go down, so the facility has to be able to keep running no matter what happens with the weather. And not only telecoms, but any business that depends on the uptime of its website is also interested in knowing that their website is safe, secure and will always work. Users simply have no patience for a website or a telephone that doesn't work.
We are fortunate in two aspects of this business as it relates to VoIP telecom and data center hosting. First, Denver is a terrific area for locating a data center, and many large data centers have chosen Denver because of the lack of severe weather, earthquakes or floods. Second, our affiliate companies are already familiar with data centers both as users and, as providers of data center space. Vitelity, for example, pays a great deal of money each month for its data center space, and it out of room.
Out of room is a good thing - it further validates the demand for data center space.
So, although we are in the preliminary stages - looking for space, getting quotations on generators, checking on fire suppression equipment - we hope to make progress on this project in the next year.
Tuesday, June 3, 2008
Voice needs will always be growing
The one thing an investor, myself included, should always consider about a stock is to look at the industry sector in which the company operates. For example, many investors are sour on GM and Ford because they see that the large vehicles produced by USA-based auto manufacturers are going to be in less demand due to fuel prices. So one could say that the overall outlook for the automobile industry is uncertain, and coupled with tougher economic times, current owners may choose to keep their used cars longer.
But the fortunes of many other market sectors are not as tied to such economic factors, and I believe the voice and communications market is one such example. Telcos make money when people talk, and therefore voice services are always in demand. Each and every year the voice traffic, in the USA and globally, increases, independent of fuel prices and economic bad news. In fact, the new voice conferencing companies are experiencing double-digit growth year over year, as companies seek to find ways to hold conferences online, and reduce travel expenses.
So, I think our market sector is a good one, and one that will experience growth year after year. That's just the way people are around the world... they like to talk. And with the world markets expanding and even small companies now doing business worldwide, the global voice services market shows no end of growth.
I like our market sector!
But the fortunes of many other market sectors are not as tied to such economic factors, and I believe the voice and communications market is one such example. Telcos make money when people talk, and therefore voice services are always in demand. Each and every year the voice traffic, in the USA and globally, increases, independent of fuel prices and economic bad news. In fact, the new voice conferencing companies are experiencing double-digit growth year over year, as companies seek to find ways to hold conferences online, and reduce travel expenses.
So, I think our market sector is a good one, and one that will experience growth year after year. That's just the way people are around the world... they like to talk. And with the world markets expanding and even small companies now doing business worldwide, the global voice services market shows no end of growth.
I like our market sector!
It's been quiet - but more to come
Many shareholders have sent emails asking "what is happening". Admittedly we've been slow to post on this blog or update the website. We've just been so busy, and I apologize for that.
But other emails are asking the same question, but specifically asking about share volume. When there is a very low volume of shares traded, I get emails asking why the volume is low. Any investor needs to clearly understand that the Company has not have control over the share volume; same goes for share price. Everyone at the Company is working very long hours to do the best they can, and hopefully that effort will be reflected in the price and the trading volume. But truth be told, the Company has no control over those things. And, no investor would ever want the Company to be able to "control" the share price or trading volume.
The share price and trading volume is simply a direct result of the investment decisions of investors and shareholders.
Thank you for your support, we appreciate it.
But other emails are asking the same question, but specifically asking about share volume. When there is a very low volume of shares traded, I get emails asking why the volume is low. Any investor needs to clearly understand that the Company has not have control over the share volume; same goes for share price. Everyone at the Company is working very long hours to do the best they can, and hopefully that effort will be reflected in the price and the trading volume. But truth be told, the Company has no control over those things. And, no investor would ever want the Company to be able to "control" the share price or trading volume.
The share price and trading volume is simply a direct result of the investment decisions of investors and shareholders.
Thank you for your support, we appreciate it.
Wednesday, February 20, 2008
The Secret All Shareholders are Wanting to Know
We get a lot of email asking "What is happening to the stock.. is it going to go up? Is it going to go down?"
We are very puzzled by these questions, and it's hard to believe that anyone expects us to have any idea, let alone answer that question.
Anyone should know that the Company can't influence the price of the stock. And the Company can't predict the price, and it won't comment on it's opinion of what the stock price will be at any time in the future.
We are very puzzled by these questions, and it's hard to believe that anyone expects us to have any idea, let alone answer that question.
Anyone should know that the Company can't influence the price of the stock. And the Company can't predict the price, and it won't comment on it's opinion of what the stock price will be at any time in the future.
Business Plan - 2008
We get many questions that we just can't answer to one individual - that wouldn't be fair or appropriate. So to get the information out, and to give answers we can do so if we provide the information to everyone. A popular question has been "What are the expansion plans for the Company?" That's also an important question and one that investors can use to judge the suitability of an investment in the Company.
USNT is a growing collection of investments in small companies, and we think this makes sense. So far, each company, division or subsidiary is in a slightly different, although related, marketspace.
The different markets allow the Company to be involved in slightly diverse marketspaces, to hedge it's bet a little, and take advantage going forward of any increase in one market over another.
The related aspects of the committed investment in each company allows us to be able to build upon our knowledge and experience in the same field - in this case, VoIP and telco technology.
The benefits of this strategy also include the fact that we start to gain excellent economies of scale, which will reduce our costs over time. For example, we can use the same Mexican telecom company as provider for both Vitelity and oneWorld (wholesale). As volume increases to any one supplier we can expect that our overall cost per minute to that supplier will be reduces. Volume discounts.
INTERNATIONAL EXPANSION
Vitelity.com offers low-cost retail accounts, and wholesale voice traffic. Until late 2007, Vitelity was mostly interested in handling voice traffic (minutes) to the USA and Canada - a very large and growing market. Vitelity did offer international termination, but not very much of the business revenue was tied to international.
However, late in 2007, Vitelity started to promote the use of their network for international voice traffic. This has increased the volume of such traffic, and helped to increase revenues.
But in order to separate the the busienss of selling to hundreds of smaller resellers, and the market geared to very high volume international voice traffic, it was decided to create a "high volume wholesale" entity called oneWorld Networks. Under this new name, oneWorld can offer huge discounts to high volume customers - many of whom spend $10,000 and much more, per month. But they will only do so if given extra special discounts.
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USNT is a growing collection of investments in small companies, and we think this makes sense. So far, each company, division or subsidiary is in a slightly different, although related, marketspace.
The different markets allow the Company to be involved in slightly diverse marketspaces, to hedge it's bet a little, and take advantage going forward of any increase in one market over another.
The related aspects of the committed investment in each company allows us to be able to build upon our knowledge and experience in the same field - in this case, VoIP and telco technology.
The benefits of this strategy also include the fact that we start to gain excellent economies of scale, which will reduce our costs over time. For example, we can use the same Mexican telecom company as provider for both Vitelity and oneWorld (wholesale). As volume increases to any one supplier we can expect that our overall cost per minute to that supplier will be reduces. Volume discounts.
INTERNATIONAL EXPANSION
Vitelity.com offers low-cost retail accounts, and wholesale voice traffic. Until late 2007, Vitelity was mostly interested in handling voice traffic (minutes) to the USA and Canada - a very large and growing market. Vitelity did offer international termination, but not very much of the business revenue was tied to international.
However, late in 2007, Vitelity started to promote the use of their network for international voice traffic. This has increased the volume of such traffic, and helped to increase revenues.
But in order to separate the the busienss of selling to hundreds of smaller resellers, and the market geared to very high volume international voice traffic, it was decided to create a "high volume wholesale" entity called oneWorld Networks. Under this new name, oneWorld can offer huge discounts to high volume customers - many of whom spend $10,000 and much more, per month. But they will only do so if given extra special discounts.
///
Sunday, February 3, 2008
Acquisition of Packetrino
USNT acquired a major share ownership in Packetrino, started and owned by software programmer Mario Guzman. The purchase price paid is based on performance, with a maximum of $685,000 in development expense, cash and shares to be paid over the next two years. This Packetrino deal will not cause any immediate impact on USNT shares for current shareholders, and any shares paid as part of the purchase price will be restricted and may not be sold for at least two years.
Packetrino is developing a product commonly known as a Session Border Controller, or SBC and a softswitch. However, the Packetrino SBC will have additional management features as well as security and load balancing features that are missing or cost extra in other SBC products.
The Packetrino product will be sold as a hardware/software combination, sold as a pair of servers. Prices will range from $14,850 for the load balancer and security version, to upwards of $84,000 for the SBC and routing version. Other companies in this marketspace include Acme Packet, Sansay, and NexTone. Packetrino pricing will be about half of what these other companies charge, but will include many additional features.
USNT expects that Packetrino will be a winner. Products will start shipping by Spring 09. www.Packetrino.com
Packetrino is developing a product commonly known as a Session Border Controller, or SBC and a softswitch. However, the Packetrino SBC will have additional management features as well as security and load balancing features that are missing or cost extra in other SBC products.
The Packetrino product will be sold as a hardware/software combination, sold as a pair of servers. Prices will range from $14,850 for the load balancer and security version, to upwards of $84,000 for the SBC and routing version. Other companies in this marketspace include Acme Packet, Sansay, and NexTone. Packetrino pricing will be about half of what these other companies charge, but will include many additional features.
USNT expects that Packetrino will be a winner. Products will start shipping by Spring 09. www.Packetrino.com
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