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Iowa City Firm Dialed into VOIP Boom

Posted on: Thursday, 21 July 2005, 03:00 CDT

Jul. 20--IOWA CITY -- Providers of low-cost Internet-based telephone service are hitting the limits of advertising on the Web, a dilemma that an Iowa City marketing company is happy to help them solve.

Competition is escalating in VOIP, or voice-over-Internet-protocol, telephone services, according to Anthony Marlowe, president of Iowa City-based TMONE.

VOIP uses broadband Internet connections such as cable TV or digital subscriber line Internet links to transmit local and long-distance phone calls. Providers typically charge a flat rate of around $25 per month.

Marlowe says VOIP providers with names like Vonage, Skype and Boingo initially won new customers by advertising on the Internet.

Internet search engines charge advertisers to have their Web sites appear high in results lists when certain combinations of terms -- such as ''telephone," ''services" and ''Internet" -- are entered by searchers. Advertisers pay the engines for each time searchers click on their Web addresses.

The strategy worked when there were few VOIP phone providers, Marlowe says. As the field has grown crowded, VOIP phone providers have faced the challenge of standing out in the field and reaching an audience that doesn't fully understand the technology. The providers often pay more per click to be listed high in search results.

TMONE offers a more traditional cold-calling approach using call centers in Iowa City and North Liberty.

The company also markets VOIP services through direct mail, opt-in e-mail and Internet advertising. Marlowe says TMONE's strategy appeals to many clients because they are required to pay only for customers who sign up for their services, not for ''clicks" that don't generate sales.

The business has grown to 100 employees. Plans call for the opening of a new 200-seat call center in Eastern Iowa in the near future.

Marlowe says the company does not view the National Do-Not-Call Registry as an impediment. Screening out households that don't want direct marketing calls simply saves time, he maintains.

TMONE, also known as Total Marketing One, was formed by Marlowe and Chief Operating Officer John Burchert. The North Liberty residents are longtime friends and former employees of a major telecommunications company. They have one silent partner.

''Our work force is comprised mainly of personnel who have a lot of telecom experience here in Eastern Iowa, and university students," Marlowe said. ''They really understand the technology." The company offers project management on marketing campaigns in addition to other services. In addition to VOIP companies, it serves competitive local and long-distance providers.

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Copyright (c) 2005, The Gazette, Cedar Rapids, Iowa

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Source: The Gazette - Cedar Rapids, Iowa

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