WorldNet Telecommunications: A Case Study
Puerto Rico is one of the Caribbean's fastest growing communications services markets thanks to increasing need and demand for traditional and advanced telecommunications services. To address this trend, WorldNet Telecommunications decided to evolve its successful business model from a reseller to a facilities-based competitive local exchange carrier (CLEC) and become the standard for leading communications services on the island.
With a strong cash flow based on its history of success and without a legacy infrastructure, it could take the time to consider the merits of legacy vs IP and is ultimately developing a state-of-the art Next-Generation Network using leading technology and products from best-in-breed vendors. WorldNet elected to use its capital carefully by investing in key aspects of the network that made sense, while leasing other aspects (its "smart build" strategy). Recognizing the switch to be the "brains" of a network, WorldNet chose carefully and ultimately selected Metaswitch as the source of providing the range of existing and next-generation services to its existing SMB market and government and emerging residential markets.
This strategy has proven successful as WorldNet has experienced excellent on-net margins, a 20% improvement in Operating Expense, and 100% year over year growth in advanced IP services. It is well poised to grow revenues through new converged communications services and in new markets, leveraging the advanced capabilities of the Metaswitch platform.
In regard to maintaining a sustainable competitive edge, Lawrence Freedman, President and CEO of WorldNet, says, "Of course we compete in part on price, but by offering value to the customer, we know that we will be paid for providing that value - affording us continued healthy margins. Service packages offering high-quality, premium solutions that make our customers more productive are how we ultimately need to distinguish ourselves. With Metaswitch we have a key differentiator."
