RE: Peering Presentation

["Ron Dallmeier" <ron@xena.ca>]

I agree with what you are saying.

Again I will draw a comparison to email. Many individuals and even smaller
companies are not interested in running their own email servers. ISPs that
bundle VOIP packages with access will be a common method. But they will
not be free to charge whatever they think the market will bare. Instead,
competition will drive the price down to near cost. With the exception of
interim fees related to PSTN gateways, costs are not very high.

VOIP will not be a new source of revenue for existing telcos but a more
efficient way to deliver voice. It will clearly errode existing revenue.

How important is email to most of us? I would say 'very important'. If I
had to, I would pay a lot of money to maintain this communication. But I
do not have to because it is so efficient that it costs so little. It is
either not worth accounting for, or it can be covered by advertising
revenue.

I think that VOIP will follow this trend. Sure, people are prepared to pay
$20 to send and recieve voice calls. But if the Internet ends up making
this very efficient, another provider will compete at $15, then $10, then
$5, then virtually free.

...Ron


>
> I follow the logic, but I also think it is a long way off!  Two reasons -
> I
> think the major market gain in the US (and maybe in other countries) will
> be
> via a combined service from a broadband IP provider who will bundle
> internet, TV and voice if they can. They will also make the VoIP address
> invisible to the outside world if they can, and use rationale about
> security, QoS etc. Most voice customers don't care one way or the other.
> Then they can continue to extract a payment to access that customer -
> perfectly logical behavior from their perspective. As long as the cost per
> month stays pretty low - say less than $20 for all services, most people
> will think it isn't worth the hassle to do anything else.  I could
> probably
> work out how to set my own VoIP to VoIP calls up ( I used Skype for a time
> to call people in the UK), but with my combined service from Lingo being
> $19.99 including Europe, it isn't worth the hassle to get a headset out.
>
> Steve


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