There is no argument that VOIP is an excellent substitute for traditional phone lines for both businesses and consumers. If the technology is there, no matter how hard anyone tries to stop the growth of VOIP, it is going to happen. Fortunately, the traditional phone companies have decided to embrace VOIP rather than fight it (Interestingly enough, AT&T now calls itself the "networking company". Not a bad repositioning strategy considering that traditional phone service is no longer an attractive business to be in.).
iProceed still skeptical about the future of VOIP companies
Remember the days when consumers paid by the hour to access the Internet? Some Internet cafes and phone companies in many countries actually charged by the minute. Generally speaking that is history. In fact, if we look at countries like South Korea the broadband penetration is so pervasive that it literally costs nothing to access the Internet. So how long can these companies charge for phone calls when it is technically no different than "data" which is currently transmitted at no additional cost.
iProceed's analysis is already turning out to be correct. In just last 12 months, rates for VOIP services for consumers have dropped significantly. Vonage has continued to drop prices and unlike many other businesses that offer such incentives only to new subscribers, Vonage has offered the same rate to all subscribers.
At this time, programs like AT&T CallVantage are directed towards attracting new customers so there is no need to poach each other's customers (the penetration of VOIP is still less than 1% of the overall phone subscribers in the US), but rates are still expected to come down.
How far is the day when a company will simply develop the technology that will allow anyone with a broadband connection to use VOIP without any telecom company in between (either using a inexpensive piece of hardware or software or both)? We are sure that someone is already thinking about it.
Recommended article: Paid VOIP telephony? Dead before arrival
iProceed still skeptical about the future of VOIP companies
Remember the days when consumers paid by the hour to access the Internet? Some Internet cafes and phone companies in many countries actually charged by the minute. Generally speaking that is history. In fact, if we look at countries like South Korea the broadband penetration is so pervasive that it literally costs nothing to access the Internet. So how long can these companies charge for phone calls when it is technically no different than "data" which is currently transmitted at no additional cost.
iProceed's analysis is already turning out to be correct. In just last 12 months, rates for VOIP services for consumers have dropped significantly. Vonage has continued to drop prices and unlike many other businesses that offer such incentives only to new subscribers, Vonage has offered the same rate to all subscribers.
At this time, programs like AT&T CallVantage are directed towards attracting new customers so there is no need to poach each other's customers (the penetration of VOIP is still less than 1% of the overall phone subscribers in the US), but rates are still expected to come down.
How far is the day when a company will simply develop the technology that will allow anyone with a broadband connection to use VOIP without any telecom company in between (either using a inexpensive piece of hardware or software or both)? We are sure that someone is already thinking about it.
Recommended article: Paid VOIP telephony? Dead before arrival