What vexes VoIP users?

Scott Helms khelms at ispalliance.net
Fri Mar 4 10:02:13 CST 2011

> This has nothing to do with Vonage and likes that market to consumer - their
> devices are locked so the consumer is locked into the services that
> Vonage/MagicJack/etc provides. They are not the companies that are going to
> eat lunch of cable companies and old school telcos as their business model
> is to sell the same servie at a minimum discount to the rates of dominant
> carriers.
> What the cable companies are afraid of is that when a consumers have SIP
> speaking devices used to terminate calls the consumers will find VOIP
> providers that charge $1.00 a month for a phone number and another $0.01457
> per voice minute with 6, 5, 4, 3, 2 or 1 second billing. After deploying
> about nearly a thousand SIP-speaking phones for different folk over last few
> months I can tell you that the self-provisioning for the customer's side is
> becoming so easy a caveman can do it.
> There goes their $20 or more per month worth of profit per phone number.

First its indisputable that voice is inexpensive and will become less 
expensive, from all providers that stay in the business, over time.  
Having said that, perhaps you might want to look at both Skype & 
MagicJack since their pricing ranges between free to extremely 
inexpensive.  MagicJack does require an adapter designed for them, but 
that seems to mainly be because they are targeting the very low 
technical skill market specifically.  Skype (and clones) of course run 
on multiple devices ranging from SOHO 3rd party adapters to PCs to smart 
phones.  MagicJack charges $19.99 per year for unlimited US and Canadian 
calling(and it appears to really be unlimited 

While Skype and MagicJack have attracted users (so has Google Voice 
which is also free) they haven't eroded the VOIP take rates for the 
cable operators in significant numbers.  I would suggest that this has 
nothing to do with the fact these services/devices don't inter-operate 
with PacketCable networks and more to do with customers liking bundles 
and generally believing that the cable offering is a good deal even if 
its not the cheapest offering.

> Does it mean that they are preventing other SIP devices to work on their
> IP network? No, it does not. But what they are doing is preventing SIP
> devices from working with their voice network because they do not want it to
> be a user-controlled SIP device.
> Alex

Exactly how are they preventing anything?  This is like someone yelling 
that they have designed a car that is 14 feet wide and the government is 
preventing them from being able to drive on the existing roads which by 
standard are only 12 feet wide (some older roads are much narrower).

Scott Helms
Vice President of Technology
ISP Alliance, Inc. DBA ZCorum
(678) 507-5000

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