VoIP is suddenly everywhere, and it’s not just because VON is taking place in Boston. Literally, consumers can currently pick from among three or four VoIP providers, whether Vonage, AT&T, a cable operator, Skype, Verizon, or any of a growing number of providers. Now AOL has taken the wraps off its VoIP initiative, announcing three tiers of service, with the unlimited local and long distance option priced at $29.99/month.
Microsoft is planning to enter the game, having announced last month its acquisition of VoIP company Teleo and unveiling a partnership today with Qwest to target small business users. ISP EarthLink is also planning a VoIP option, naming today two vendors, Level 3 and Sonus, to help with that effort.
Meanwhile, Google has some VoIP plan up its sleeve, with the launch of the GoogleTalk voice-over-IM service presumably just the beginning of the Internet giant’s voice plans.
It’s too soon to say “stop the madness” but in truth the voice market can’t sustain this heightened level of competition — the collective cash flow margin can’t be split five, six or seven ways without some of these providers going belly up. Skype, which had the good fortune to find eBay as an acquirer, may, ironically, emerge from this competitive brawl on top because the company has never banked on high prices or fat margins, and as a consequence is one of the lowest-priced (most customers pay nothing) providers in the market.
Cynthia Brumfield at 4:39 PM|Comments(0)
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