Comments on: Here Comes Trouble: The Future of Free http://gigaom.com/2008/01/31/here-comes-trouble-the-future-of-free/ Trusted Insights and Conversations on the Next Wave of Technology Thu, 26 Nov 2009 06:47:41 +0000 http://wordpress.com/ hourly 1 By: 7 Ways to VoIP On the Go - GigaOM http://gigaom.com/2008/01/31/here-comes-trouble-the-future-of-free/#comment-881777 7 Ways to VoIP On the Go - GigaOM Tue, 03 Jun 2008 20:20:17 +0000 http://gigaom.com/?p=11340#comment-881777 <p>[...] the emergence of VoIP, or voice-over-Internet protocol, technology has already helped push down the cost of making a phone call, now it’s starting to have a deflationary impact on the world of mobile, where call charges [...]</p> [...] the emergence of VoIP, or voice-over-Internet protocol, technology has already helped push down the cost of making a phone call, now it’s starting to have a deflationary impact on the world of mobile, where call charges [...]

]]> By: Net Neutrality Links 02-03-2008 http://gigaom.com/2008/01/31/here-comes-trouble-the-future-of-free/#comment-860016 Net Neutrality Links 02-03-2008 Tue, 05 Feb 2008 13:21:24 +0000 http://gigaom.com/?p=11340#comment-860016 <p>[...] Here Comes Trouble: The Future of Free By Daniel Berninger As with efforts to unwind net neutrality, competition represents a last resort for most telcos. Net neutrality keeps the dream of counting bits like minutes on hold, because as long as a voice bit costs the same as a video bit or a … Tags: consumers-choice, democracy-dying, denial-of-service, freedom-threatened, net-neutralityRelated StoriesNet Neutrality Symposium January 26, 2008Net Neutrality Links 01-06-2008Android Developer Challenge Submission Deadline ExtendedNet Neutrality Links 01-20-2008Net Neutrality Links 01-13-2008 [...]</p> [...] Here Comes Trouble: The Future of Free By Daniel Berninger As with efforts to unwind net neutrality, competition represents a last resort for most telcos. Net neutrality keeps the dream of counting bits like minutes on hold, because as long as a voice bit costs the same as a video bit or a … Tags: consumers-choice, democracy-dying, denial-of-service, freedom-threatened, net-neutralityRelated StoriesNet Neutrality Symposium January 26, 2008Net Neutrality Links 01-06-2008Android Developer Challenge Submission Deadline ExtendedNet Neutrality Links 01-20-2008Net Neutrality Links 01-13-2008 [...]

]]> By: Nicholas Sten http://gigaom.com/2008/01/31/here-comes-trouble-the-future-of-free/#comment-859918 Nicholas Sten Mon, 04 Feb 2008 22:05:24 +0000 http://gigaom.com/?p=11340#comment-859918 <p>MetroPCS has been a flat-rate wireless provider here in the states for years, for all services (minutes, SMS, etc.), so Dirks' revelation is nothing new.</p> <p>And to Ben above in regards to flat-rate conferencing, there's plenty of free conferencing to go around because of the reciprocal compensation the carrier gets for terminating the incoming PSTN call.</p> <p>All-you-can-eat buffets have always existed, regardless of the operating costs involved in providing the service. It becomes a numbers game as not everyone will 'overeat'.</p> <p>The problem at issue here is that rates should be equal between two carriers who exchange traffic, voice, voip, or otherwise. Those incumbent carriers that see revenue and subscribers declining as a result of these disruptive technologies will always try and lobby their way around the fast-moving upstarts.</p> <p>I guess if you can no longer compete in your own game, then by all means, change the rules. Is there any regulated industry where this isn't the case?</p> MetroPCS has been a flat-rate wireless provider here in the states for years, for all services (minutes, SMS, etc.), so Dirks’ revelation is nothing new.

And to Ben above in regards to flat-rate conferencing, there’s plenty of free conferencing to go around because of the reciprocal compensation the carrier gets for terminating the incoming PSTN call.

All-you-can-eat buffets have always existed, regardless of the operating costs involved in providing the service. It becomes a numbers game as not everyone will ‘overeat’.

The problem at issue here is that rates should be equal between two carriers who exchange traffic, voice, voip, or otherwise. Those incumbent carriers that see revenue and subscribers declining as a result of these disruptive technologies will always try and lobby their way around the fast-moving upstarts.

I guess if you can no longer compete in your own game, then by all means, change the rules. Is there any regulated industry where this isn’t the case?

]]> By: Markus Goebel http://gigaom.com/2008/01/31/here-comes-trouble-the-future-of-free/#comment-859154 Markus Goebel Thu, 31 Jan 2008 23:33:40 +0000 http://gigaom.com/?p=11340#comment-859154 <p>The internet's flatrate model will prevail.</p> <p>At least in Germany Thorsten Dirks, CEO of the 3rd biggest MNO e-Plus, said so. "In three years the old business model is over. There will be no money to charge anymore for SMS and mobile phone minutes. Thats why we seek cooperations with Google, Facebook and other internet companies."</p> <p>The dumb pipe is the way to go. With fair prices there is money in this business. When there is no per minute price I will be much less price sensitive.</p> <p>Now I try to save wherever I can.</p> The internet’s flatrate model will prevail.

At least in Germany Thorsten Dirks, CEO of the 3rd biggest MNO e-Plus, said so. “In three years the old business model is over. There will be no money to charge anymore for SMS and mobile phone minutes. Thats why we seek cooperations with Google, Facebook and other internet companies.”

The dumb pipe is the way to go. With fair prices there is money in this business. When there is no per minute price I will be much less price sensitive.

Now I try to save wherever I can.

]]> By: James Wanless http://gigaom.com/2008/01/31/here-comes-trouble-the-future-of-free/#comment-859085 James Wanless Thu, 31 Jan 2008 16:14:28 +0000 http://gigaom.com/?p=11340#comment-859085 <p>I agree with Daniel's comments about managing billing versus cost of infrastructure. Ultimately, credit risk management (end users who don't pay) is a big issue when margins are slim. At Talkster http://www.talkster.com , we skipped the end user billing issue with an ad supported calling model. Using various methods (depends on the origin and destination of the call) we connect calls without cost to the end user. Sometimes there is a cost for a local call, often times this is part of a bundle or flat rate national plan. As for Internet Telephony, there is always the cost of the Internet connection so it's a numbers game. The perceived free calls are actually being paid for as part of the cost of the broadband/wi-fi or other subscription. There is no such thing as a free call. The old world per minute pricing model will likely disappear over time and simplified, flat rate pricing will dominate. Domestically it works where you control the network or have reasonable interconnect rates. Internationally it will be a long time coming.</p> I agree with Daniel’s comments about managing billing versus cost of infrastructure. Ultimately, credit risk management (end users who don’t pay) is a big issue when margins are slim. At Talkster http://www.talkster.com , we skipped the end user billing issue with an ad supported calling model. Using various methods (depends on the origin and destination of the call) we connect calls without cost to the end user. Sometimes there is a cost for a local call, often times this is part of a bundle or flat rate national plan. As for Internet Telephony, there is always the cost of the Internet connection so it’s a numbers game. The perceived free calls are actually being paid for as part of the cost of the broadband/wi-fi or other subscription. There is no such thing as a free call. The old world per minute pricing model will likely disappear over time and simplified, flat rate pricing will dominate. Domestically it works where you control the network or have reasonable interconnect rates. Internationally it will be a long time coming.

]]> By: dalkoyo http://gigaom.com/2008/01/31/here-comes-trouble-the-future-of-free/#comment-859083 dalkoyo Thu, 31 Jan 2008 15:57:43 +0000 http://gigaom.com/?p=11340#comment-859083 <p>What happens when you lose a major cable and/or satellite link? This just happened in the Asian and Indian areas when a cable was cut.</p> What happens when you lose a major cable and/or satellite link? This just happened in the Asian and Indian areas when a cable was cut.

]]> By: Ben Lilienthal http://gigaom.com/2008/01/31/here-comes-trouble-the-future-of-free/#comment-859079 Ben Lilienthal Thu, 31 Jan 2008 15:27:19 +0000 http://gigaom.com/?p=11340#comment-859079 <p>Using Voice 2.0 technologies, PSTN and the Internet we have been able to create and launch a FLAT RATE conference calling service -- www.highspeedconferencing.com</p> <p>The world is flat, the future is flat rate.</p> Using Voice 2.0 technologies, PSTN and the Internet we have been able to create and launch a FLAT RATE conference calling service — http://www.highspeedconferencing.com

The world is flat, the future is flat rate.

]]> By: Dimitrios Matsoulis http://gigaom.com/2008/01/31/here-comes-trouble-the-future-of-free/#comment-859043 Dimitrios Matsoulis Thu, 31 Jan 2008 13:49:39 +0000 http://gigaom.com/?p=11340#comment-859043 <p>The data volumes required for voice are not making existing IP networks struggle and things are going to get better. For this reason being charged the earth for a voice call or a tiny SMS is naturally infuriating. Unfortunately, unlike internet businesses of any sort, in many countries telephony companies are still state controlled and subsidised. Therefore, mind frames do not change from one day to another... http://electronrun.wordpress.com/</p> The data volumes required for voice are not making existing IP networks struggle and things are going to get better. For this reason being charged the earth for a voice call or a tiny SMS is naturally infuriating. Unfortunately, unlike internet businesses of any sort, in many countries telephony companies are still state controlled and subsidised. Therefore, mind frames do not change from one day to another… http://electronrun.wordpress.com/

]]> By: Parul Bindra http://gigaom.com/2008/01/31/here-comes-trouble-the-future-of-free/#comment-859025 Parul Bindra Thu, 31 Jan 2008 10:52:21 +0000 http://gigaom.com/?p=11340#comment-859025 <p>Well i agree to Daniel, where a lot of people think Voice Over Internet Protocol (VoIP) might be a future of conversation, to see a darker side of it not many view this development as an occasion to celebrate. There are still many uncertainties in considering whether Internet telephony could transform the Internet into a successor or a looser. But i think it would be foolish to panic now and shun VoIP in the face of potential threat VoIP faces today. In my opinion, it is the next best thing to have happened in the information technology front. Instead we should try and look for a way out.</p> <p>Parul Bindra www.bhopu.com - Web 2.0 Blogs</p> Well i agree to Daniel, where a lot of people think Voice Over Internet Protocol (VoIP) might be a future of conversation, to see a darker side of it not many view this development as an occasion to celebrate. There are still many uncertainties in considering whether Internet telephony could transform the Internet into a successor or a looser. But i think it would be foolish to panic now and shun VoIP in the face of potential threat VoIP faces today. In my opinion, it is the next best thing to have happened in the information technology front. Instead we should try and look for a way out.

Parul Bindra http://www.bhopu.com – Web 2.0 Blogs

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