NetComm has high hopes for VoIP

Networking hardware manufacturer NetComm plans to create higher end VoIP products for corporates and enterprises in a bid to extend its reach beyond the highly commoditised ADSL routers market.

Michael Boone, executive director of NetComm, said corporate VoIP is where the future is for the vendor because the modem market has reached its maturity.

"Currently we sell ADSL modems and it's where the majority of our revenue comes from. But products are getting faster and becoming cheaper to buy. It no longer offers much return," he said.

"NetComm has developed and manufactured higher end VoIP handsets for NEC. This is a sign for our channel that they can expect more mature products built with the technology," Boone said.

However, Boone said NetComm will never be able to compete with Cisco and is not trying to move into HP's IP room.

"Cisco's cheapest product hits the $2000 mark. Our most expensive product, a VoIP gateway that connects PBXs to IP telephony, is in the region of $2000. They have been doing this a lot longer than us," he said.

The announcement comes as NEC rolled out its Univerge SV7000 IP Telephony, developed and manufactured by NetComm.

NetComm was approached by NEC to develop and manufacture the product in 2005. In October 2006 the product went into production and NEC has started deliveries of its handsets to be used exclusively with its range of Univerge IP-PBX range.

"We were uncertain about the implications of this project. We weren't even sure we were able to meet NEC's specs," said Boone.

"Now that we have done it I'm sure it will boost the company's revenue. It's difficult to estimate the exact figure at this stage, but we will have a better idea of the financial status in around four months."

NetComm is in talks to further develop two new products for NEC. The modem vendor has also been approached by a multinational European vendor for a similar deal, said Boone.