“There were a lot of people who jumped in — I think the barriers to entry were pretty low — but I think a lot of them are now running after shrinking dollars,” Katie Griffin, VOIP analyst at The Yankee Group in Light Reading. Light Reading is doing the math, and like I have said many times before, it just doesn’t add-up. Apparently, consumers are paying mere $20 a month for their service. Very little room for error in these early stages, one wonders how much staying power folks really would have once the price wars break out.
3 thoughts on “VoIP shake out is coming”
Once dual-mode cellular handsets become common, the bottom for the consumer VoIP market will really drop out then.
At $20 month, the price war already happened. There are services for $9.99/month for outgoing calls and free voip2voip calls. And there are some at $14.99 with a e.164 number, voicemail, bucket of USA+ Canada minutes, and free voip2voip. That seems pretty low. Can it make money? Sure if you keep overhead low, keep the T&C’s fiscally reasonable and have an existing cash cow business to fund the growth 🙂
I think the prices could be headed lower – 14.95 for unlimited and then $10 a month. this is going to get painful for those who are just selling voice. the bundle guys ae eventually going to win out in this one. or so it seems