Comments on: The great VoIP Implosion http://gigaom.com/2004/09/30/the-great-voip-implosion/ Sat, 11 Feb 2012 06:01:09 +0000 hourly 1 http://wordpress.com/ By: Om Malik on Broadband : » SIPphone Announces $6.0 Million Venture Capital Investment http://gigaom.com/2004/09/30/the-great-voip-implosion/#comment-98220 Wed, 15 Feb 2006 07:21:45 +0000 http://gigaom.wordpress.com/2004/09/30/the-great-voip-implosion/#comment-98220 [...] “There is no doubt that the price of voice calls is headed towards near zero, and companies like us need to make money off premium services and features that consumers are willing to pay for,” says Robertson. [ Read: The great VoIP implosion.] SIPphone is going to announce a new “premium offering” later this week. Robertson, who previously had started MP3.com, says he is working on creating a private label business for SIPphone as well, and is already powering a low-cost calling service called iPhox. SIPphone was rumored to be in talks with News Corp, for adding voice functionality to MySpace.com. There were rumors of a $50 million buyout offer from Rupert Murdoch. While those talks haven’t gone anywhere, this new round of funding will give SIPphone the runway it needs to get market traction. [...]

]]> By: Aswath http://gigaom.com/2004/09/30/the-great-voip-implosion/#comment-98214 Wed, 30 Nov -0001 00:00:00 +0000 http://gigaom.wordpress.com/2004/09/30/the-great-voip-implosion/#comment-98214 It is interesting to note that for all the publicity AT&T is receiving on this news, when it is not going to impact the first year revenue (20×6+35×6 vs. 30×12-30).

]]> By: Om http://gigaom.com/2004/09/30/the-great-voip-implosion/#comment-98215 Wed, 30 Nov -0001 00:00:00 +0000 http://gigaom.wordpress.com/2004/09/30/the-great-voip-implosion/#comment-98215 Aswath I agree… but I think for the sake of readers, elaborate.

]]> By: Aswath http://gigaom.com/2004/09/30/the-great-voip-implosion/#comment-98216 Wed, 30 Nov -0001 00:00:00 +0000 http://gigaom.wordpress.com/2004/09/30/the-great-voip-implosion/#comment-98216 AT&T previous promotional plan was $20 for the first 6 months. Today’s announcement terminates that program, but gives the first month free. So both the old plan and the new plan will generate $330 in 12 months. So this announcement doesn’t cost AT&T much, indeed it increases revenue in the short term; but forces Vonage and others to take a hit. Smart move, I would say.

]]> By: Glenn Fleishman http://gigaom.com/2004/09/30/the-great-voip-implosion/#comment-98217 Wed, 30 Nov -0001 00:00:00 +0000 http://gigaom.wordpress.com/2004/09/30/the-great-voip-implosion/#comment-98217 Om, I should know this, but what is Vonage’s hard cost for terminating calls at this point? If I make 1,000 minutes or 5,000 minutes of calls a month, they have fixed fees, sure, for maintaining equipment, relationships, staff, all the overhead stuff. But I don’t know if they pay a penny a minute for termination or 5 cents a call or what have you. Or, if they’re totally exempt.

I currently have the local unlimited, which was just bumped to premium at the same price under this price change, and I actually don’t use the service very much because of a weird DSL problem. I’ve been tempted to cancel, but now I’m thinking I should just make it work!

]]> By: Aswath http://gigaom.com/2004/09/30/the-great-voip-implosion/#comment-98218 Wed, 30 Nov -0001 00:00:00 +0000 http://gigaom.wordpress.com/2004/09/30/the-great-voip-implosion/#comment-98218 Glenn, this reply is not based on knowledge, but only deductions based on observation. I think only a handful of Egyptian high priests, sorry FCC focused lawyers, know the correct answer.

Currently these service providers pay any termination charges. That is why AT&T petitioned to FCC that they need not have to pay termination charges even for PSTN calls if they carry it as VoIP. In any event we can bound the total cost (transposrt and termination charges) by looking at Skype’s charges and calling cards that are available to PSTN users – about 2 cents per minute. On top of this, Vonage et al have another source of income – termination charges for incoming calls – that are not available to Skype.

Rationalization of settlement charges is going to be a “disruptive” event for this industry.

At least that is the view of a 4 dimensional world by a three dimensional man.

]]> By: skibare http://gigaom.com/2004/09/30/the-great-voip-implosion/#comment-98219 Wed, 30 Nov -0001 00:00:00 +0000 http://gigaom.wordpress.com/2004/09/30/the-great-voip-implosion/#comment-98219 ahhhhhhhhhhhh, the ole “”TERMINATION”"”" end game user and VOIP??????? Riddle me THIS:::::::: “”"”What does VOIP, Sprint Dial up, Level3 Dial up, and TERMINATION all got in common?”"????????????
http://biz.yahoo.com/ap/041001/level_3_sprint_1.html

FOLLOW the Breadcrumb trail my freinds…………COX will show you how to CONNECT THE DOTS”!!!!

Skibare

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