Tuesday, December 23, 2003
Interesting NYTimes review of VoIP services:

Vonage now has almost 80,000 customers, up from 7,000 a year ago. (Over all, according to the research firm InStat/MDR, about 135,000 American consumers now have Internet phone service.) Part of the service's early success stems from its relative freedom from federal rules that bind phone companies. It barely needs to charge its customers any taxes, at least for now, and it does not have a mandate to ensure universal telephone access across the country, as the Baby Bells do.

Also interesting is a tidbit that I failed to consider when I signed up for my VoIP service:

Minutes later I was listening to a dial tone (a fake one, piped in by Vonage to make the system feel familiar).

I always get off on those little nuances that we as consumers seem to psychologically require that convey no real benefit whatsoever (like the coloring of sodas, for example).

Finally, the author seems to have come to the same conclusion that I did when I was looking at the Wall Street VoIP hype in an earlier post.

But the wonderful thing about a competitive market is that the foibles of any one company will not matter for long. If Time Warner tries to overcharge you, you can switch to Vonage. If Vonage regularly makes you wait on hold for 15 minutes to get the answer to a simple question, as it did to me this week, you can sign up with AT&T. Maybe Verizon and other Baby Bells, once they are forced into real competition for customers, will emerge as the best choice. They just won't be the only one.

11:39:55 AM  #