The David against Goliath VoIP Services Challenge
by Michael Moore

Have you ever wondered why the large telephone service providers have not
pioneered
VoIP services for their customers? With all their vast profits made, why
have they not brought out the fantastic features of service that VoIP enables and
given them to their customers? Just what is it that holds them back? Why is it that
small companies have been the ones to push the service out? Just what is
happening out there?

Anyone who uses VoIP services may well ask these questions and many more. Just
what is the situation and why is it turning out the way it is? Looking at some of the
events over the past few years will indeed answer these questions. Really we can go
back to say, the year 2002, when any real VoIP service began in earnest. However
from the standpoint of the large phone companies, the challenge they faced back
then was the cable company's, cell phone company's and the like slowly eating away
their customer base.






The fall in revenue from land-line fees (around $20.00 per line every month) has
been ringing alarm bells. This has resulted in these major phone companies being
forced to spend billions on enlarging their networks to give support to such as
Internet access as well as television. All this in the hope of keeping their position from
being whittled away even more and of course their profits. In this is the irony.

The more that people have turned to using broadband facilities, the more the
opening came for small companies to spring up, utilizing this new technology. Patents
were applied for, for the various
VoIP systems being invented to utilise the high
speed broadband Internet. So all this now makes life more tedious for these large
telecoms organizations as the small VoIP company's have patented their VoIP
systems. However, they are always dependent to a large degree on the networks
connections of the large telecoms organizations.

Inevitably, from the innovation of such as
Skype and Vonage, Verizon, Futurephone
and many others there has been the expected skirmishes. In the USA in 2004 SBC
sued AT&T for avoiding access charges by routing calls over its Internet backbone.

Now SBC has acquired ownership of AT&T and has accused the VoIP Company -
Futurephone of similar misdoings. That case is still ongoing. On the meantime
Fututephone has ceased trading. We have also seen battles between VoIP
company's such as that presently going on between Verizon and Vonage. Verizon
claiming Vonage is infringing on their patents filed. Vonage who was leading much of
the technological advance initially has been beset with a whole raft of problems and
lawsuits. The situation increasingly looks messy.

Whilst in the USA the large phone network companies are still digging their heels in
when it comes to any serious attempt to establish their own VoIP for their customer
base. They are increasingly watching with hostile eyes these ‘thorn in the side VoIP
Company's.

However, recently there has been a softening of attitude in Europe with Deutsche
Telecom's recent announcement that it is taking a stake in Internet phone services. It
has done a deal with Jahjah one of the new start ups as Jahjah allows people to use
the traditional landlines and cell phone net to make low cost calls. So there appears
to be some 'thawing of the ice' when it comes to being friend or foe. This is a very
significant change in attitude, but we have to ask, will this eventually influence or
soften the likes of AT&T in the USA.

Another new company with patent pending VoIP is Global1touch. They also are going
down the right road just as Jahjah. Their customers enjoy the use of both Internet
connection as well as through the normal landlines and cellphone connections.

To sum up, the history of activity within the telecom industry clearly shows that the
stance, the pressures and the desire to keep a status quo by the large telecom
organisations clearly took their eye off the potential of VoIP to them. However, we
could ask – are they letting them have all the difficulties and problems to solve and
eventually snap them up at a price later? Who knows?

So if you want drama, power struggle and real live action you don't need the Ewen's
of Dallas. This all keeps out attention riveted in the real world. Who knows how the
plot will turn out? What will be the next twist in the saga to emerge? Who would have
thought that when you pick up your phone to make a call all this is going on – the
battle between the David's and Goliaths of the telecom world. Let's face it we are
talking of a Trillion Dollar Industry. No wonder we see all this intrigue.  

Michael Moore is a known article writer on VoIP, broadband & telecommunications.
You are invited to read some of these here
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