Fergie's Tech Blog

Taiwan Telecom Blames VoIP for Drop in Long Distance Calls

Dan Nystedt writes on InfoWorld:

Taiwan's largest telecommunications company on Thursday blamed VOIP (voice over Internet protocol) for part of a dropoff in long distance revenue last year, a trend companies worldwide face as users turn to Internet services such as Skype for low cost or no cost voice calls.

It's an issue network operators are grappling with around the world, and users should pay attention to the issue. Telephone networks cost hundreds of millions of dollars to build, and companies want to wring every dollar they can to pay for them and grow their businesses. Low-cost or no-cost VOIP calling is a threat to their earnings, and telecom industry complaints could prompt government regulators to step in and offer protection. If that happens, users could miss out on lower cost Internet calling.

posted by Fergie @ 3/30/2006 06:26:00 AM