Thursday, January 13, 2005

VoIP will hit Euro telcos hardest - 

via VoIP Watch

European telecom operators will be hit the hardest by the fast and accelerating uptake of Voice over IP (VoIP) services such as Skype that route voice calls over the internet - both fixed and mobile operators, according to a newly published study from research firm Evalueserve.

The reason is that European operators are relatively highly exposed because calling and roaming rates, as well as the share of roaming calls, is higher, and local calls are charged by the minute.

In contrast, the study found that the flat monthly telephony fee model prevalent in countries such as the US was less likely to be affected by VoIP providers.

Andy argues that:

I actually think the RBOC's flat rate customers are prime to switch. Here's why. They are early adopters, not laggards. Over time they want the best. They are price savvy, so VoIP offers appeal to them easily, and they likely already have the features they want now available with VoIP. By shedding the local line costs they save at least $10.00 or so, and avoid taxes. That's why the RBOC's have to be concerned about the Vonages and CallVantages of the world.

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