VOIP Madness Looks Familiar

Business 2.0: Every week I see at least one new company pop up and try to sell Internet-based phone service to consumers. It has gotten so ridiculous that some low-cost commodity equipment makers such as Belkin are getting into the business of selling Internet voice. According to some estimates, there are nearly 400 companies selling VOIP services in the United States. Venture capitalists are clamoring to get their money into many of these service providers. A lot of those people are going to get hurt. This reminds me of the early days of ISPs when hundreds of mom-and-pop service providers flooded the market with cheap all-you-can-eat dial-up Internet access plans. Ten years later, most of them are gone, and business has coagulated around four large players — America Online, Earthlink, Microsoft, and Net Zero. The VOIP service business is going to see a similar contraction as well. Continue reading at B2.0 website

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