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

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
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

Luke Hill

MSI GT75 TITAN

I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Laura Johnston

MSI GS65 Stealth Thin

If you can afford the price tag, it is well worth the money. It out performs any other laptop I have tried for gaming, and the transportable design and incredible display also make it ideal for work.

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.

Featured Content

Product Launch Showcase

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?