6 Comments

Summary:

James Enck on why things are getting really ugly at Deutsche Telekom. He describes that things are “messy, confusing, and not terribly inspiring. Management were frank in admitting that DSL unbundlers are pressurizing the voice market, as I expected already. Sipgate’s 100k, plus maybe 300 – […]

James Enck on why things are getting really ugly at Deutsche Telekom. He describes that things are “messy, confusing, and not terribly inspiring. Management were frank in admitting that DSL unbundlers are pressurizing the voice market, as I expected already. Sipgate’s 100k, plus maybe 300 – 400k on Freenet/United Internet VoIP products, plus another c.1.4m Skype accounts (and whatever number may be using DT’s own VoIP product). Whatever double-counting may be involved here, I think it’s safe to say that we’re probably looking at a market of at least 2m VoIP users, or nearly 1/3 of the broadband users in the country.”

That’s right folks perhaps it is time to take the North American VoIP blinkers off, and look worldwide about VoIP’s impact on traditional telecoms. I have in the past said that we are in a downward spiral and there is hardly a way out. Instead of US, the self-mutilation of the telecom business is starting out in Europe. James calls it reinvention. via EuroTelcoblog

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  1. Davis Freeberg Thursday, May 12, 2005

    As a consumer, I say let the price wars begin. It’s going to cause a lot of disruption to both the traditional and the current VOIP marketplace. In the long run, consumers will win, massive corporations will be created and we will experience the telephone in a radically different way. VOIP allows for so much more then voice. Consumers in the US will eventually wise up to Skype and other discount offerings and it will put huge pressure on all the telecoms. This is the next gold rush.

  2. Jesse Kopelman Thursday, May 12, 2005

    I guess this is one reason they have no money for T-Mobile USA. I wonder how much they pay CZJ? That money might be better spent on cell sites, as she is a bit old/irrelevant for their target demo. Not that I don’t like to look at her . . .

  3. Jesse

    she can have all my money to be honest. i think it is all worth it. :-)

  4. Its interesting, in the late 90’s/early 2000s, long haul network fiber destroyed the margins in the long distance business. It appears that the mid-late 2000s will see broadband to the home destroy the margins in the local market.

    I can assure you that many start-ups never thought they’d see the day when RBOCs would actually have to innovate to remain relevant. It’s a long time coming…

  5. AP,

    Irony of it all is that we will see over next few years a rapid shuffling of ever shrinking deck of dollars. I am not sure when it all ends, but just look at the airline market. it is a good indicator of how things are going to play out.

  6. VoIP is killing Deutsche Telekom

    VoIP is biting profits at telcos worldwide….

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