Feeds

VoIP will be US broadband killer app

Without FCC intervention, that is

  • alert
  • submit to reddit

Choosing a cloud hosting partner with confidence

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

Top 5 reasons to deploy VMware with Tegile

More from The Register

next story
'Kim Kardashian snaps naked selfies with a BLACKBERRY'. *Twitterati gasps*
More alleged private, nude celeb pics appear online
Wanna keep your data for 1,000 YEARS? No? Hard luck, HDS wants you to anyway
Combine Blu-ray and M-DISC and you get this monster
US boffins demo 'twisted radio' mux
OAM takes wireless signals to 32 Gbps
Google+ GOING, GOING ... ? Newbie Gmailers no longer forced into mandatory ID slurp
Mountain View distances itself from lame 'network thingy'
Apple flops out 2FA for iCloud in bid to stop future nude selfie leaks
Millions of 4chan users howl with laughter as Cupertino slams stable door
Students playing with impressive racks? Yes, it's cluster comp time
The most comprehensive coverage the world has ever seen. Ever
Run little spreadsheet, run! IBM's Watson is coming to gobble you up
Big Blue's big super's big appetite for big data in big clouds for big analytics
Seagate's triple-headed Cerberus could SAVE the DISK WORLD
... and possibly bring us even more HAMR time. Yay!
prev story

Whitepapers

Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.