Feeds

VoIP will be US broadband killer app

Without FCC intervention, that is

  • alert
  • submit to reddit

Application security programs and practises

Voice over IP is the killer app for broadband, according to a report just released from home networks research house, Parks Associates.

The white paper, entitled "VoIP: At Last a Killer App?", says that if regulations stay the same, then consumers switching to a broadband line and VoIP - and throwing away their dial-up and conventional phone - will actually be saving money each month.

The savings are small: $8 a month per US family, based on current charges. The report notes, however, that the wrong type of intervention by the FCC could kill of this tiny advantage and crush the nascent industry. It also points out that a family that uses the VoIP phone as an extra phone would be paying $30 a month more, so it needs to be a leap to VoIP-only households to save money.

Parks says that this could finally kill off resistance to going broadband in US households. "Among narrowband households not interested in broadband, almost 60 per cent cite price as the main deterrent," said Parks analyst John Barrett. "VoIP changes that equation by offering an overall net savings if you upgrade to broadband."

"Eight dollars is not a tremendous margin," Barrett adds. "If regulatory changes cause the cost of VoIP to increase by just a few dollars per month, the incentive to switch disappears. Most people will not go to the trouble."

These calculations have been done using VoIP offerings from US telcos. If you did the calculations with the free VoIP services from rogue P2P companies such as Skype, the incentive is even greater, because calls are free.

© Copyright 2004 Faultline

Faultline is published by Rethink Research, a London-based publishing and consulting firm. This weekly newsletter is an assessment of the impact of events that have happened each week in the world of digital media. Faultline is where media meets technology. Subscription details here

Eight steps to building an HP BladeSystem

More from The Register

next story
Sysadmin Day 2014: Quick, there's still time to get the beers in
He walked over the broken glass, killed the thugs... and er... reconnected the cables*
SHOCK and AWS: The fall of Amazon's deflationary cloud
Just as Jeff Bezos did to books and CDs, Amazon's rivals are now doing to it
Amazon Reveals One Weird Trick: A Loss On Almost $20bn In Sales
Investors really hate it: Share price plunge as growth SLOWS in key AWS division
US judge: YES, cops or feds so can slurp an ENTIRE Gmail account
Crooks don't have folders labelled 'drug records', opines NY beak
Auntie remains MYSTIFIED by that weekend BBC iPlayer and website outage
Still doing 'forensics' on the caching layer – Beeb digi wonk
BlackBerry: Toss the server, mate... BES is in the CLOUD now
BlackBerry Enterprise Services takes aim at SMEs - but there's a catch
The triumph of VVOL: Everyone's jumping into bed with VMware
'Bandwagon'? Yes, we're on it and so what, say big dogs
Carbon tax repeal won't see data centre operators cut prices
Rackspace says electricity isn't a major cost, Equinix promises 'no levy'
prev story

Whitepapers

Top three mobile application threats
Prevent sensitive data leakage over insecure channels or stolen mobile devices.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.