Today, Ike has a post titled Neutral Tandem: A Smart VoIP Business (http://ikeelliott.typepad.com/telecosm/2008/04/neutral-tandem.html) on his Telecosm blog. It is worth a quick peak, as I won’t repeat the ground Ike convered in his post. I will add a few thoughts.
Neutral Tandem is a public company. Their enterprise value was a staggering $510M in March. Their annualized revenue is probably in the $120M vicinity, which means the Neutral Tandem is trading at over 4X revenue. Nice!
I am not close enough to the company to know whether this is a sustainable valuation, though as a University of Chicago guy, I guess I should trust the stock exchange. In any case, Neutral Tandem is an example of how clever entrepreneurs can innovate as the telecom technology and ecosystem evolves.
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