Wednesday, September 10, 2008

Telco fails

The local phone company isn’t likely to offer innovative services for small businesses. In fact, VoIP equipment sales to traditional phone companies and the like is trending down. THey just arent investing in updating their technology

That could be a mistake though.

According to the latest feature from VoIP News — the main site:

They could theoretically improve their margins if they did buy. VoIP “softswitches” are cheaper to purchase and operate than the giant traditional Class 5 phone switches the carriers used to use exclusively. But the telcos aren’t buying traditional switches either, according to Collins. The reason: their voice business isn’t growing, it’s shrinking. Thanks to competition from cable and wireless providers, their total subscriber numbers are declining, as is their revenue per subscriber. Thus they can’t justify expenditures on new VoIP switches, even if they’re relative bargains. “All they’re trying to do is save money and hope subscribers don’t go to cable or wireless,” Collins stated.

Read more about it here.

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