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VOIP's Residential Growth in North America
Om Malik offers up his usual keen insight into market statistics being offered by Frost & Sullivan about the North American VOIP market. Frost & Sullivan suggests residential revenue will hit $4.07-billion by 2010 from $295.1 million in 2004. Om does some math, and comes to the conclusion average revenue per subscriber is $18 a month - making VOIP "nothing but a cheap tack-on service. Unless you are bundling VoIP service with cable or DSL service, or packaging it as a part of some triple-play offering, there is little chance of making money in this game". Ouch! Perhaps the VOIP market's Achilles' Heel is starting to reveal itself with the bottom line being there is little money to be made by offering the service. If this is true, it spells bad news for Vonage and its IPO aspirations, but great news for Skype, which is leveraging the growing demand for ultra low-cost VOIP services.
Talk Is Cheap
Millions of people are saving money by switching from using their traditional phones to placing calls over the Internet. According to research firm IDC, the number of US subscribers to residential voice over Internet protocol (VoIP) services will grow from 3 million in 2005 to 27 million by the end of 2009. Talk Is Cheap dispels the mysteries surrounding the different options and types of services and shows consumers how to get started. “For the… Direct and Related Links for 'Talk Is Cheap'
AT&T's CallVantage: Excellent Phone Service on the Cheap (PC World)
PC World - AT&T's VoIP service came with major installation hassles, but offered landline-like voice quality, most of the time.
The Coming Death of Cheap VoIP
No matter who invented or thought of VoIP first, the phone companies will own it.
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A third of people in the US and Europe will abandon phone lines in favour of wireless and broadband telephony come 2009, say analysts Gartner. Broadband telephony is gaining ground among consumers as people become more confident users of their high-speed net connections. It offers a cheap alternative to fixed-line voice calls. By 2009, 70% of voice connections around the world will be wireless, the Gartner report found. This is due to falling mobile costs and greater penetration in countries such as China and India. Market research group Gartner predicted that handsets would be available for as little as 14 by 2010.
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VoIP gets given 911 Ultimatum in the states
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In case of emergency, VoIP users can send smoke signals
No 911, no new customers Voice over IP, or VoIP, promises to bring cheap phone calls to the digitally connected - but it's also opening up a new and unexpected fissure in the digital divide.
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It's not much of a surprise that Videotron has terminated its $4.95 a month for 1,000 LD minute plan today after Bell Canada and Rogers stopped similar offers last month. With LD prices returning to 4 or 5 a minute for North American calls - rather than 0.5 - some consumers may start to see VOIP as a more viable option again. Given consumers don't seem to be interested in Web-based calling features, VOIP service providers had tried to use the idea low-cost LD as a major marketing tool. This opportunity, however, disappeared when Bell introduced its $5 for 1,000 LD minutes plan last year.
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