VoIP shake out is coming


“There were a lot of people who jumped in — I think the barriers to entry were pretty low — but I think a lot of them are now running after shrinking dollars,” Katie Griffin, VOIP analyst at The Yankee Group in Light Reading. Light Reading is doing the math, and like I have said many times before, it just doesn’t add-up. Apparently, consumers are paying mere $20 a month for their service. Very little room for error in these early stages, one wonders how much staying power folks really would have once the price wars break out.


Om Malik

I think the prices could be headed lower – 14.95 for unlimited and then $10 a month. this is going to get painful for those who are just selling voice. the bundle guys ae eventually going to win out in this one. or so it seems


At $20 month, the price war already happened. There are services for $9.99/month for outgoing calls and free voip2voip calls. And there are some at $14.99 with a e.164 number, voicemail, bucket of USA+ Canada minutes, and free voip2voip. That seems pretty low. Can it make money? Sure if you keep overhead low, keep the T&C’s fiscally reasonable and have an existing cash cow business to fund the growth :-)


Once dual-mode cellular handsets become common, the bottom for the consumer VoIP market will really drop out then.

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