Feeds

VoIP will be US broadband killer app

Without FCC intervention, that is

  • alert
  • submit to reddit

Security for virtualized datacentres

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

Providing a secure and efficient Helpdesk

More from The Register

next story
Docker's app containers are coming to Windows Server, says Microsoft
MS chases app deployment speeds already enjoyed by Linux devs
IBM storage revenues sink: 'We are disappointed,' says CEO
Time to put the storage biz up for sale?
'Hmm, why CAN'T I run a water pipe through that rack of media servers?'
Leaving Las Vegas for Armenia kludging and Dubai dune bashing
Facebook slurps 'paste sites' for STOLEN passwords, sprinkles on hash and salt
Zuck's ad empire DOESN'T see details in plain text. Phew!
Windows 10: Forget Cloudobile, put Security and Privacy First
But - dammit - It would be insane to say 'don't collect, because NSA'
Symantec backs out of Backup Exec: Plans to can appliance in Jan
Will still provide support to existing customers
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.