Richard Oosterom, Colt Technology Services Q&A: Keeping voice in tune

23 May 2014 | Kavit Majithia

Following Colt’s decision to exit carrier voice trading and focus on the enterprise side of the segment, Capacity spoke to Richard Oosterom, EVP of voice services at Colt Technology Services about the company’s voice service restructure.

Can you explain Colt’s voice strategy going forward?
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 you 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.

Why are you focusing more on enterprise voice?
Enterprise voice is a summary name for all communications services that we provide to enterprise customers. Enterprise voice plays more to our strengths and differentiation and generates higher margins for our business.

How will your voice business evolve as a result of these latest 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.

How important is the voice business overall in the wholesale market at the moment?
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 voice as an application that is part of a bigger communications suite (unified communications). Colt is ideally positioned to help enterprises and wholesale players (carriers and service providers) in this transformation in all its European countries.