Considering that virtually everyone needs an internet service provider (ISP), and the vast majority of folks are limited to getting their high speed internet from either their telephone company (telco) or cable company (cableco), how can independent VoIP service providers (VoSP) effectively compete with the telco and cableco for supplying telephone service?
Generally speaking nowadays both the telco and cableco prices an unlimited phone line on top of their FiOS or U-verse or coax (or whatever brand) internet service at somewhere between $10 and $20 more than they would charge for an internet-only (or internet and video only) package. So unless someone uses very little calling it is hard for a VoSP to beat the incremental cost for a phone line from the telco or cableco.
In the past the argument was even though a telco or cableco facilities-based phone line was more reliable in many instances than a non-facilities based VoIP line, for many going with VoIP was worth the large difference in cost compared to an ILEC phone line, with all its tariffed rates, regulatory fees and taxes versus a low-cost low-taxed VoIP line. That argument has gotten weaker and weaker over the last few years with the incremental cost of a phone line from the major providers having come down in cost significantly.
As far as all the bells and whistles featured on VoIP lines, that is all very nice and useful for those actually needing it or for hobbyists. But for the average Joe who just wants to make and get his phone calls, it isn't a significant factor.
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