Fergie's Tech Blog

Om Malik: 'Quiet Desperation in the VoIP Business'

I think Om Malik echos what a lot of us have been thinking, and brings up some very valid points when he writes (primarily about Sun Rocket's product pricing for VoIP) that:

This offer shows the quiet desperation in the business. VoIP-based phone services are growing, only for those who are providing near free services like Skype or others who sell it as digital phone, aka the cable companies. There is very little room for independents in this business, unfortunately. Regardless of all that, this is part of a continuing trend of constant commoditization of the voice, and a silent price war between the independent service providers.

This also shows the lack of imagination on part of service providers who are using price as their only tool. Going back to today’s news, Sun Rocket’s new offer is attractive for those with a limited need for a quasi landline but I wonder how much stress it is going to put on their infrastructure. The company’s network and infrastructure has buckled many a few times in the past, irritating the customers.

posted by Fergie @ 12/06/2005 08:55:00 AM