Telio - Still Going Strong

Telio is far from a household name in North America, but if you follow the residential VoIP market - or VoIP in general - they should be on your radar. I've been following them for years, and if this is news, here's what you need to know. They went public about the same time as Vonage, but let's just say the companies have gone in different directions. You can get a taste of this from my earlier posts, such as this one. Since this comparison post from 2006, the song has basically remained the same, and Telio keeps making money.

So, who is Telio? Well, if you do a Google search, you'll discover this is a Canadian fabric company whose website is under construction. Ok, well, let's try Bing. This search turns up a popular Greek restaurant on the the Upper West Side of NYC. Hmm - we're getting colder, not warmer.

If you dig a bit deeper, you'll eventually discover Telio Holding ASA, and that's where your search ends. A profitable VoIP operator based in Norway - who knew?

It's an old story for me, and you'll have to look at my older posts to get filled in, but basically Telio has got the right business model for OTT - over the top - VoIP, and with every passing quarter of profitability, they're proving that it can be done. And for what it's worth, they have some cool looking phones now and have made a strong push into video. I couldn't help noticing their latest phones on display at BroadSoft Connections last week.

I'm posting about them now as they announced their Q3 results a few days ago, and I'm determined to share this before the week is out. The results are not spectacular, and that's exactly what I like about this. They don't need an amazing quarter to get your attention and make you believe the worst is over. There never was any of this - they just continue posting steady growth - isn't that better?

In this economy, I'll take those numbers any day. Revenues are up, profits are up, the customer base is growing, and new markets are becoming established. They also mention making Deloitte's Top 50 Technology list for 2009. That listing hasn't been publicly announced yet, and I can't find it on the website, but I've followed Deloitte's industry lists for a while, and this wouldn't surprise me at all.

Vonage is still with us, but they're not so much in the public eye any more, and they're still struggling to find a niche for long term survival. The market has changed so much since their debut, and I'm not sure if that time will ever come. Telio, on the other hand, has stuck to its plan from the beginning, and they continue to execute with ongoing innovation, nominal marketing spend and a focused value proposition.

Perhaps most important is their ability to enter new geographic markets and grow their footprint. While markets like Holland and Denmark are pretty small, Telio has proven they can replicate their domestic model elsewhere. Just you wait - it's only a matter of time until they set their sights on bigger markets, and if they can scale successfully, Telio will be a company you'll have to follow, not want to follow. Just remember where you heard it first.