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VoIP Unlimited is Really Limited

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Broadband Reports forum users are complaining that some of the VoIP providers are reneging on the “unlimited plans” if the customers talk too much.

The latest complaint from our users on this issue is concerning RocketVoIP; one user was told their excessive usage makes them unqualified for the residential package they signed up for. 1150 minutes per month is considered excessive by the company.

Clearly when you talk too much, you are making sure that the VoIP providers pays a lot of money to PSTNs for interconnecting with their networks. At some point this makes the whole enterprise unprofitable. I have said time and again, the business model of many VoIP providers is not sustainable. Expect more such incidents in coming months.

4 Responses to “VoIP Unlimited is Really Limited”

  1. If somebody is trying to do a residential line replacement, then 1,150 minutes is too low for a limit.

    The fear that exists is that a small number of consumers will end up costing the provider a significant amount of money through excessive consumption. These users tend to show up first because they are shopping around for the best deal for their situation. This leads to behavior to attack the heavy user at the cost/risk of annoying your good customers. If you grow large enough, though, you can virtually eliminate the heavy communication user effect through averaging.

    Of course, they will still light up your fraud/abuser alarm board.

  2. I don’t think people would have a problem with *clearly spelled-out* terms for what is the limit of minutes used; it’s the term “unlimited” which has a definite meaning to everybody (i.e., without limits), that really isn’t unlimited, which has people mad.