MNF Group Ltd & Dubber Corp Ltd offer customers new cloud service

This morning voice call recording specialist Dubber Corp Ltd (ASX: DUB) confirmed its deal with MNF Group Ltd (ASX: MNF) (the former MyNetFone business) to enable voice call recording for landline customers was active.

Dubber’s software-as a-serve product allows telco carriers like MyNetFone to offer the service to consumers or corporate clients who wish to record calls and enjoy the convenience of storing the records in the cloud. The service will be provided to customers of MyNetFone on a large scale who still use traditional landlines without the requirement for additional lines or hardware as it is cloud based.

The deal looks a positive one for both businesses as Dubber gets to market its proprietary software to a large and ready made client base, while MyNetFone has another potentially useful product to offer customers. The financial agreements behind the deal have not been revealed, although it is likely to be mutually beneficial to both businesses if successful. Dubber stating that the first customers have already been engaged and the service will be available in October 2016.

I expect the wider MNF Group will be a solid long-term investment thanks to its well-regarded management team, long-term focus, and the opportunity it has to grow its online voice communications business on a global scale.

MNF group remains a small player in a telco sector characterised by consolidation recently, with the likes of TPG Telecom Ltd (ASX: TPM) and BigAir Group Ltd (ASX: BGL) all involved in recent merger and acquisition activity.

MNF stock sells for $4.55 on a high multiple of trailing earnings as institutional interest in the business picks up steam. Investors looking to buy some may find a more attractive entry point with a little patience.

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Motley Fool contributor Tom Richardson owns shares of MNF Group Limited.

You can find Tom on Twitter @tommyr345

The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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