IN FOCUS

Cutting Edge Telephony

by Marc Almagro
Photography by Mohammad Izzadely
21 Feb 2018

The application of Voice Over Internet Protocol (VoIP) and Private Branch Exchange (PBX) is paving the way to cost-efficient, high-quality telephone communications. With these technologies, Telco newcomer Velox Networks is preparing to challenge the long-held dominance of its older rivals

Mr. Martin Nygate is the founder and CEO of Velox Networks, which provides end-to-end telecommunication services with business grade Voice Over Internet Protocol (VoIP) technologies and cloud-based Private Branch Exchange (PBX) communications platform. The company has obtained license from IMDA to be established as Singapore’s latest Telecommunications Service Provider. Velox Networks is looking to challenge incumbent telcos in the B2B space by providing quality calls at a fraction of the cost (up to 95 per cent cheaper) currently charged by incumbent Telcos ($1.63 charged by one local Telco vs. $0.018 charged by Velox for a call to China), paving a new, radically cheaper and more efficient way for businesses to communicate with superior call quality.

What is the nature of Velox Networks, and what is its gameplan to deliver better products and services to its clients?

Velox is a licensed telecommunications service provider, licensed by the Singapore IMDA to provide telecommunications services in Singapore. Velox focuses on a true cloud based PBX telecommunications platform delivering unparalleled features with astonishing call quality and call costs between 80 per cent to 95 per cent less than the incumbent telecommunications service providers, and all for a low monthly fee of $21.99 inclusive of a free, fully provisioned IP phone for instant plug-and-play use. 

Velox Networks was established after the company founders, in their previous companies, were looking for a simple, cost-effective solution to the huge cost of hardware-based telecommunication platforms that were limited in their features and forced customers to subscribe to the high cost calls of the local telcos. After over a year of development and seven months to convince the Singapore IMDA of the robust stability of the platform as well as the ability to expand and support customers, the license was granted and Velox Networks Pte Ltd was born.

What are telecommunications platforms are currently available to customers, and what type of technology powers them? How does the technology base affect the subscription and call rates?

The current alternative to the Velox platform are either expensive on-site PBX systems requiring capital investment and weeks of deployment, or cobbled together IP PBX servers combined with off-the-shelf software applications that try to simulate cloud based PBX functionality. These solutions require capital investment as well as long periods of deployment and installations.

There is only one real way for a customer to know if indeed the vendor provides a cloud-based, cost-effective telecommunications platform. All the customer need to do is to require the vendor to provide a trial installation. If the vendor is not able to plug a phone into the customers IP network without any preparatory work, and immediately make a call, then the proposed solution will be complicated, difficult to install and maintain, and probably expensive in the long run.

IP telephony and Cloud Based PBX systems are fundamentally simple and should be designed for ease of installation and use. Customers looking to buy, replace or upgrade an existing PBX should consider the substantial benefits inherent in cloud based PBX systems.

Too many companies rely on old PBX technology that deliver substandard call quality and functions and are often upgraded to the extent that the critical foundation of any companies business, becomes a mess. (As an example, see attached picture of a real company’s PBX room that illustrates the problems incurred over the years with PBX’s that have been upgraded time and again to accommodate a company’s changing needs resulting in an uncontrolled and uncontrollable environment.) True cloud based systems require no on-site equipment or wiring as all the configuration, changes and expansion are software driven and configured via an easy to use web portal.

"Velox is able to deliver a highly competitive offering in comparison to the incumbents by the simple fact that Velox is not burdened by legacy technology requiring a huge army of engineers to support and maintain antiquated copper wire based systems."

How is Velox able to deliver a highly competitive telecommunications platform? How different is it from the incumbents? Please provide actual rate comparisons.

Velox is able to deliver a highly competitive offering in comparison to the incumbents by the simple fact that Velox is not burdened by legacy technology requiring a huge army of engineers to support and maintain antiquated copper wire based systems.

As an example of the huge differences in costs, a local Telco charges for a call to India $1.78 per minute with their ‘crystal clear’ direct connect +1  service. Alternatively, the same Telco offers a call to India via their 019 services for $0.93 per minute. However, these calls are designated ‘value calls’ and often use indirect call routing that result in substantially poorer quality calls. Velox Networks offer calls to India for $0.02 using the same ‘crystal clear’ direct connect service as one of the local Telco’s service.

Interestingly, Velox purchase that call to India for perhaps $0.01 per minute, at a similar rate to the rate that a local Telco purchases the call – the question is, why does said Telco ‘sell’ that call for $1.78, and Velox ‘sell’ that call for $0.02. The answer is clear – the local Telco has to cross-subsidize legacy technology whereas Velox does not.

How are you growing Velox Networks? What are the next steps for the company?

Velox is currently aggressively pursuing its regional expansions and is entering into joint ventures with telecommunications license holders in the various targeted markets. Prior to Velox Networks launch into regional markets, a license would be required from the local regulators to deliver the type of end to end service that businesses require as opposed to consumer grade free voice calling applications such as Skype, WhatsApp, WeChat etc. These applications were designed to support free calls for consumers but have not been adopted as a standard by any company. This is evident by the fact that all companies still operate and subscribe to fixed line communications.

Velox Networks has addressed this need in the market for a business grade, high quality, fully featured telecommunications platform that can be deployed in a matter of day with zero capital investment and with the disruption cause by conventional PBX systems or hybrid solutions that try to emulate the true benefits of a cloud based PBX telecommunications platform.