Internode makes 40 percent gross on VoIP

ISP Internode has revealed it makes a 40 percent-plus gross margin providing voice-over IP services to customers.

The ISP’s carrier relations manager John Lindsay highlighted its NodePhone VoIP service as one of only a few places Internode was able to turn a healthy profit.

He produced graphs at a telecommunications regulatory conference in Sydney that showed Internode lost around $10 per month providing its users with a 40 GB internet service.

These losses were subsidised in part by the third of Internode’s customer base on the ISP’s own DSLAMs rather than Telstra Wholesale ports, and by applications such as VoIP.

“We sell 18 cent untimed calls to fixed line phones,” Lindsay said.

“We make some money from that. [But] if you’re selling untimed local calls in the 8 cent to 10 cent area you’re simply not making money.”

Lindsay said telcos made most of their money from SMS messages, followed by mobile voice calls and 1300 voice services.

He also said a 100 GB plan through Internode’s own DSLAM cost $90 per month. “Fortunately we can sell that plan for $129.95,” Lindsay said.

“Our customers on our DSLAMs are what carries our business.”