Company description::
Until recently, phone service delivered through a broadband Internet hookup has been largely a toy for techies and a niche market for small start-ups.
But as improved technology turned the tinny, buzzy Internet calls as clear as land-line connections, telecom giants such as AT&T, Verizon, Qwest and SBC Communications have pricked up their ears. The big advantage to VoIP is cost; it's much cheaper than a traditional land line because it doesn't need a dedicated connection.
The big players are all planning to roll out their own VoIP products this year, said Patrick Cormack, a telecom analyst at Guzman & Co. of Miami.
''This is really going to scale up,'' he said. ``All of a sudden, you're going to have the marketing power of an AT&T. These little guys are going to be outscaled.''
That doesn't daunt Yesil. In fact, he says it will work to his advantage. He's counting on leasing his company's networks to the major VoIP contenders, as well as launching his own VoIP retail service.
''Their products are suitable for our networks,'' he said.
To prepare for the new business, last month Yesil merged one of Radiant's subsidiaries, Ntera Holdings, with publicly-held WorldQuest Networks of Dallas.
WorldQuest, which posted $9.9 million in revenue in 2003, sells prepaid phone cards that use VoIP technology, Internet money transfer services and a prepaid Visa store card.
The merger combines Ntera's vast switching network and technical expertise -- all of its software is proprietary -- with WorldQuest's retailing base, Yesil noted.
''Our strength is our technical team. They have a retail presence and market more aggressively,'' he said. ``It's going to be a good match.''
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