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Last Updated: Feb 18th, 2008 - 14:39:01 |
VoIP: Competitive Scenario
Despite a growing interest in using the Internet to make telephone calls, the technology is still in its infancy.
And while the number of converts to this burgeoning technology is relatively small locally and nationally, the day, is not far away, experts say, when transmitting phone calls through cyberspace will be the dominant medium.
Internet phone service or voice over Internet protocol is likely to rise to prominence in the United States because of its lower cost and major changes in the telecom universe.
Just a few years ago, only a handful of companies were offering VoIP service, and then only to business customers. In year 2004, however, cable companies have jumped on the bandwagon, and that has ignited significant new interest.
The players range from tiny PointOne Inc. — an Austin company that is one of the pioneers offering Voice over Internet Protocol phone service — to phone industry giants including SBC Communications Inc. and cable TV companies such as Time Warner Cable.
SBC Company has offered VoIP to corporate clients for several years, but plans for consumer service were put on hold with the proposed acquisition of AT&T.
Grande Communications, a San Marcos-based company says it doesn't plan to offer Internet-based phone service until the technology is more stable and is preferred over conventional phone service.
PointOne, a tiny Austin company is one of the pioneers of VoIP, primarily serving small and midsize businesses that want to deliver a mix of data services. PointOne has agreements with other companies to provide auxiliary services such as operator assistance.
Grande Communications is building an advanced, all optical fiber broadband network in Austin, San Antonio and four other markets in Texas. The company offers customers high-speed Internet access and cable television services. But for now, it's sticking with traditional phone service as part of a package. Grande is taking a go-slow approach to Internet phone service for two reasons. One, the current equipment still has some glitches to be worked out; and two, typical consumers are more than satisfied with conventional phone service.
Vonage's small size and its lack of its own national communications network holds expenses down, but some communications analysts say that, in the long run, the startup is too small to compete with the industry's giants.
Many companies are rushing to offer the service because they are afraid of losing ground to competitors. SBC's traditional phone business has been eroding for several years, as more people switch to rival providers or rely more heavily on cell phones.
But some companies are holding off, saying that the new technology has not yet shown it is ready to attract mainstream customers.
The early adopters for VoIP tend to be tech-savvy pioneers who like the added features of the new service or bargain-conscious users looking for "a smoking-hot deal."
For several years, VOIP has been called the technology of the future. But improvements in quality have led consumers to think of VOIP as a viable choice.
The dramatic change in telecommunications is likely to unfold over the next decade or so, but, first, companies have to get VOIP into enough homes.
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