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Technology Stocks : The *NEW* Frank Coluccio Technology Forum

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To: Lhn5 who wrote (17525)10/29/2006 10:54:15 AM
From: Frank A. Coluccio  Read Replies (1) of 46821
 
Right. You say, "VOIP is moving from the simplicity of raw cost-savings to ... "

... leverage. Some bandwidth aggregators have taken to giving VoIP services away to new prospects, gratis, in order to sweeten their bids on larger deals. It's certainly not something a carrier would choose to sell in vanilla form as a mainstay, unless it had a special hook, such as trading floor connectivity or hotline services for drilling platforms, or some such value-added capability that commands a premium. You highlight a paradox, though, when you state that it is both cheap and moves "to the complexity of why the applications possible with VOIP trump traditional PBX." Ordinarily, if a new service is superior to an incumbent one, one would expect it to be worth as least as much in trade. But here we see, to the supplier, it is not. At least in terms of unit pricing it isn't. If margins can be expanded through some means in an environment that is as competitive as VoIP, then all I have to say is more power to them. That said, there have been many carriers that have stepped into the batter's box and attempted taking a swing at selling plain vanilla VoIP. All that most of them ever succeeded in doing was hitting each other over the head with their bats.
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