Close
  • Latest News
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
Read Down
Sign in
Close
Welcome!Log into your account
Forgot your password?
Read Down
Password recovery
Recover your password
Close
Search
Logo
Logo
  • Latest News
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
More
    Home Latest News
    • Networking

    ISPs Are Going To Eat Vonages Lunch

    By
    Art Reisman
    -
    June 26, 2006
    Share
    Facebook
    Twitter
    Linkedin

      Imagine you are a decision maker at a very large U.S. ISP. You are annoyed because your once-lucrative phone business is slowly being eroded by a new wave of VOIP providers such as Vonage, Skype and Net2phone.

      These parasitic phone services are running on your high speed data circuits without paying a connection charge or royalty of any kind, but constantly offering dial tone at a lower cost than you, essentially stealing from your profitable consumer and business phone plans.

      Well what are you going to do? The answer is simple—just swat these blood sucking leeches and be done with them before they grow too big! You call all your henchmen together for a meeting, stomp your foot, just like something right out of a Hollywood script. “I want these buggers taken care of!” youd shout.

      Thats a dramatic scenario—and perhaps one that consumers dont question. Believe it or not, however, the operators of large telco companies, though profit driven, do not run roughshod over the consumer. Below well detail some of the more likely scenarios and trade-offs being made in the face of this new competition.

      Cultivating a reputation of trust is foremost with the service providers. Despite the bumps in the road, these folks know you have some choices as a consumer and are sensitive. Yes, Ill concede that large providers do cycle through periods of poor service followed by corrections like any other business. Keep in mind this is due to the normal apathy that creeps into any large organization and not some far flung conspiracy to rape consumers. There is enough competition, and consumer-based political pressure, that the last thing any provider wants to do is bring on a self induced firestorm of criticism for an unsustainable short-term gain.

      You might ask how would I know this? Well the facts are that blocking Skype, Vonage, etc., has not happened yet despite the fact that the technology has been available for a while, and there are no clear regulations governing data networks and the rights of third parties to broadcast. This shows that providers are exercising constraint in the US market.

      My connections at several small service providers and one very large provider have told me directly that blocking VOIP services is not going to be their strategy.

      So what is their strategy: just take it on the nose and go out of business?

      /zimages/2/28571.gifRead the full story on ExtremeTech: Analysis: ISPs Are Going To Eat Vonages Lunch

      Art Reisman

      MOST POPULAR ARTICLES

      Big Data and Analytics

      Alteryx’s Suresh Vittal on the Democratization of...

      James Maguire - May 31, 2022 0
      I spoke with Suresh Vittal, Chief Product Officer at Alteryx, about the industry mega-shift toward making data analytics tools accessible to a company’s complete...
      Read more
      Cybersecurity

      Visa’s Michael Jabbara on Cybersecurity and Digital...

      James Maguire - May 17, 2022 0
      I spoke with Michael Jabbara, VP and Global Head of Fraud Services at Visa, about the cybersecurity technology used to ensure the safe transfer...
      Read more
      Cloud

      IGEL CEO Jed Ayres on Edge and...

      James Maguire - June 14, 2022 0
      I spoke with Jed Ayres, CEO of IGEL, about the endpoint sector, and an open source OS for the cloud; we also spoke about...
      Read more
      Applications

      Cisco’s Thimaya Subaiya on Customer Experience in...

      James Maguire - May 10, 2022 0
      I spoke with Thimaya Subaiya, SVP and GM of Global Customer Experience at Cisco, about the factors that create good customer experience – and...
      Read more
      Big Data and Analytics

      GoodData CEO Roman Stanek on Business Intelligence...

      James Maguire - May 4, 2022 0
      I spoke with Roman Stanek, CEO of GoodData, about business intelligence, data as a service, and the frustration that many executives have with data...
      Read more
      Logo

      eWeek has the latest technology news and analysis, buying guides, and product reviews for IT professionals and technology buyers. The site’s focus is on innovative solutions and covering in-depth technical content. eWeek stays on the cutting edge of technology news and IT trends through interviews and expert analysis. Gain insight from top innovators and thought leaders in the fields of IT, business, enterprise software, startups, and more.

      Facebook
      Linkedin
      RSS
      Twitter
      Youtube

      Advertisers

      Advertise with TechnologyAdvice on eWeek and our other IT-focused platforms.

      Advertise with Us

      Menu

      • About eWeek
      • Subscribe to our Newsletter
      • Latest News

      Our Brands

      • Privacy Policy
      • Terms
      • About
      • Contact
      • Advertise
      • Sitemap
      • California – Do Not Sell My Information

      Property of TechnologyAdvice.
      © 2022 TechnologyAdvice. All Rights Reserved

      Advertiser Disclosure: Some of the products that appear on this site are from companies from which TechnologyAdvice receives compensation. This compensation may impact how and where products appear on this site including, for example, the order in which they appear. TechnologyAdvice does not include all companies or all types of products available in the marketplace.

      ×