08/10/2004 VoIP Daily

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  • Covad Communications Group launched business-class Voice over Internet Protocol (VoIP) in 42 markets around the nation and plans to expand that to 113 markets soon.
  • VoIP Spam incoming: “The fear with VoIP spam is you will have an Internet address for your phone number, which means you can use the same tools you use for e-mail to generate traffic, said Tom Kershaw, a vice president at security specialist VeriSign. “That raises automation to scary degrees.”
  • The first true killer VoIP app? Software from Frederick, MassMaryland.-based Qovia, seeks out the IP addresses assigned to phones, then sends each a 30-second recording. Its pace–1,000 synthetic calls every five seconds–is a quantum leap from the automated “Demon Box” dialers that telemarketers use now. This could be a smash-hit application for VoIP. Qovia responds: We do not do VoIP Spam. Their patent application, titled, “System and Method for Broadcasting VoIP Messages,” covers the use of VoIP for emergency broadcast as well as provides for methodologies to prevent inappropriate use of VoIP applications such as Spam over Internet Telephony, also known as SPIT or VoIP Spam. See here for more details.
  • Packet 8 videophones coming: It is tough to find their voice service, but video phone service will save Packet 8 :-)
  • Cablevision Earnings: Terrible quarter, but not for VoIP. 44,000 new customers.
  • CEO and what he should do about VoIP: “The larger reason why the CEO should care about voice over IP is because opportunities to structurally change their cost base and capabilities don’t come around very often in a CEO’s career. This could be one of those opportunities.” This might be a press release, but still worth reading.
  • Be very afraid of Vonage service terms
  • Vonage is bleeding money in marketing: In the first five months of 2004, Vonage spent a whopping $25 million on online ads, according to TNS Media Intelligence/CMR. And had about 200,000 customers to show for it. Smells like 1999. Spending on TV, radio and print has been modest: less than $5 million last year and less than $2 million in first-half 2004, per Nielsen Monitor-Plus.

1 Comment

Telecom Banker

$150/sub is not too bad, compared to wireless or CLEC cost per add. The key factor would be what is the churn?

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