November 14, 2005
VoIP call costs
The popularity of IP telephony is driving down the costs of calls. Charging by the minute will soon be impractical and companies may have to look at other sources of revenue such as advertisements and transaction fees. However, some analysts believe that even though the pricing system based on time and distance is undergoing changes, per-minute rates will still be used by telecom providers although to a lesser extent.
VoIP also offers the attraction of multiple services bundled together; for example, Sprint Nextel has signed a $ 200 million deal with cable companies that will offer data, video, mobility, and voice to its subscribers. Voice services could soon operate with a new business model in which voice is the loss leader and the revenue is generated by advertising. The growth of VoIP will also be influenced by the stance that the telecom industry takes. Already, companies such as Vodafone and Comcast are taking an interest in the VoIP-blocking software provided by Narus, which is based in Mountain View, California.
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