Firey battle emerges as VoIP provider sues Chariot

International Voice over IP (VoIP) companies, Transcom Australasia Pty Ltd and Transcom International Limited, have issued a claim for $3.2 million against Adelaide-based ISP, Chariot Ltd, citing breach of contract.

The claim was filed in the Supreme Court of Queensland this month. A further claim for pecuniary damages was made against two of Chariot's directors, Peter Buttery and Robert Horlin-Smith.

Transcom and Chariot had been involved in a joint venture to roll out a Transcom-Chariot VoIP service. Chariot paid $5 million upfront for its investment November 2004. It initially planned to roll its VoIP service out by the middle of last year. However, at a annual general meeting with shareholders last November, the company stated the rollout was delayed until December due to technical reasons.

In February, the ISP told ARN trials were in the final stages, with the service expected to be launched in March.

Spokespersons at Chariot and Transcom spokespeople were unavailable to comment.

In an ASX statement, Chariot said the claims by Transcom arose "from agreements between it and Chariot and the termination of a wholesale distribution agreement under which certain products and services were expected to be made available to the Australian telecommunications market".

"Chariot will vigorously defend these claims and is seeking advice as to any causes of action (including counter-claims) that may be available," it stated.

Managing director of Telsyte, Warren Chaisatien, said the pair were attempting to enter a difficult and highly commoditised market. The analyst firm's research showed in 2005 that there was only $80 million in total revenue made from both business and consumer VoIP combined. This had been shared by 80 players.

"The big guys, like engin and Freshtel, would occupy over half of the market and so the remaining slice is highly fragmented," he said.

"We see a lot of companies coming in and also a lot that go out of business; some because it is just not viable; and other activity is often due to mergers and acquisition."

Join the newsletter!

Or
Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.
Show Comments

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Andrew Teoh

Brother MFC-L9570CDW Multifunction Printer

Touch screen visibility and operation was great and easy to navigate. Each menu and sub-menu was in an understandable order and category

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Walid Mikhael

Brother QL-820NWB Professional Label Printer

It’s easy to set up, it’s compact and quiet when printing and to top if off, the print quality is excellent. This is hands down the best printer I’ve used for printing labels.

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Featured Content

Product Launch Showcase

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?