Voyant Puts a Game-Changer in the Lineup

A couple of weeks ago when Voyant International's (OTCBB: VOYT) CEO Dana Waldman published an update letter, we really didn't hear anything unexpected or new... except for one item - a new product called RocketConnect. He hadn't said anything about it before then, nor since then, and he didn't really say much about it in the letter. Today we're finally getting some details on why it's important.... you know, like what it is and why we should care. In a nutshell, it's pretty exciting stuff. 

RocketConnect is a utility that makes broadband faster. No surprises there - their flagship product RocketStream does the same thing. There's a difference though. 

RocketStream is designed for use by organizations that need to send and receive massive data files that would normally take hours to transmit, even with a broadband connection. With RocketStream the transmission may only take minutes. Most of their customers so far have been large corporations, who tend to handle files measured in gigs. So, RocketStream addresses a size issue. 

RocketConnect is designed to solve a speed issue at the retail, end-user level. 

Broadband is fast - no doubt about it. However, even broadband can get gummed up between your computer and where your local ISP begins and end your specific connection to their hub. The industry calls it the 'last mile'; every other span in the web connection is easy to maximize, but that last mile is subject to all kinds of pitfalls. 

RocketConnect maximizes the speed at which the last mile is utilized, making the final link in the chain up to 500% faster. Best of all, it requires no new hardware ... it's simply software that can be deployed by the ISP using their current infrastructure. 

Don't underestimate the significance of this new product. Even as fast as broadband is, a surprising number of broadband subscribers are dissatisfied with their Internet's connection speed. Translation: they may go shopping for a new ISP. Clearly ISP's want to retain their customers, so rather than risk losing them by not meeting their customer's expectations, this low-cost solution is a no-brainer solution. 

The press release (below) states - and I fully agree - that DSL providers should be particularly interested. 

Internet connections are inherently slower over phone lines than they are through cable television lines, so DSL providers are automatically behind the eight ball when it comes to speed. Now with cable ISPs ramping up their potential connection speed from 10 Mbps (megabits per second) to 20 Mbps and even 30 Mbps, DSL's maximum capacity of about 10 Mbps (and usually just 6 Mbps) just isn't all that competitive. If DSL providers want to stay in businesses, they've got to improve the customer experience. RocketConnect can do just that. 

Even so, the RocketConnect application can be used by any type of broadband service ... DSL, cable, fiber optic, or satellite. And that's where things get really exciting from an investor's perspective.
 

Dollars & Sense

Do you know how many broadband subscribers there are in the United States alone? There are 65 million of them ... 35 million cable subscribers, and 30 million DSL users. Worldwide, there are about 400 million. That translates into an annual market of about $10 billion. Every single one of them is a potential RocketConnect candidate. 

I'm not sure what the actual business/revenue model is for Voyant's RocketConnect is, but if it's anything like RocketStream I think it will be a combination of revenue sharing as well as a flat, upfront fee. (Voyant is understandably quiet when it comes to giving out those details, so we have to connect a few dots ourselves to get some concept of scope here.) 

Let's just hypothetically say that 5% of broadband users start to use RocketConnect, and Voyant's monthly 'cut' is only 1% of the per-user fee. That's still a $5 million annual opportunity. Even if my numbers are off base (I feel they're conservative though), you can get a feel for the scope here ... I think this should be a multi-million opportunity for Voyant. Investors should be excited. 

On a semi-related note, I think its worth pointing out that Voyant International has been mostly unfazed by the recession, particularly on the technology side of their business - RocketStream has continued to incrementally pump up the top line. Perhaps the only exception to the observation might be Aviation Broadband, but even those tests and talks are proceeding. I just don't want any of you to overlook VOYT. In this environment a lot of companies look completely hopeless, but Voyant isn't even close to being one of them. 

By the way, you'll soon get a chance to get a full update on where the company is, and where it's going next... 
 

Hear It For Yourself

By the way, mark December 17th on your calendar. That's when we'll be listening in on the second strategic update conference call for Voyant International. The call will take place at 11:00 a.m. PST (2:00 p.m. EST). 

To monitor the call in listen-only mode from the U.S. or Canada, please dial 800-533-7619 five to ten minutes prior to start time for registration. International callers should dial +1-785-830-1923. The event passcode is 9403082. 

If you were in on the call last time, you'll already know it was actually a pretty interesting review. Most of the time these calls are just a mouthpiece for the company's agenda, and fairly one-sided. Voyant's call was a little more back-and-forth than one might expect, and we learned some things that weren't necessarily available somewhere else.