Saturday, April 8, 2006
'Tis the Season of Surcharges & Fees
It's tax season time and it's only appropriate to discuss all things taxes, aka "surcharges" in our industry. I've always believed the incumbents with or without VOIP have a huge pricing power over any emerging technology that mimics what they offer.
Spunky voice providers like Vonage and SunRocket can offer cut-throat prices (aka spend their venture dollars on you and me), but they will never be able to displace the incumbents for basic residential service. Besides, take a look at my all-i-want-is-9-1-1 phone bill below and decide for yourself if at&t or the US Goverment is the competition in my area!
The odds are against them especially when Uncle Sam and his 50 nephews and nieces grab their share of surcharges and fees from you every month. Of course, you cannot call them taxes :-)
And I don't actually use my phone and have the service only for E-9-1-1.
I think the only way to compete is to fight on the access side and the events that are transpiring in the muni networks is the way to go. The fight is still in the pipes.
Voice, after all, is just another application on the network.