VoIP Calling Card Business Market Wars

VoIP is one of the hottest technologies out there today. VoIP phone card business has been rewarding for early movers such as Vonage and Skype. But like any other growing market, the threat of new entrants is high in this market. As a rule in economics, companies will enter this market until there is a profit to be earned. Microsoft, Google, and AOL are just a few companies that are planning to compete in the VoIP market. But there is more to come, and the battle for the VoIP phone card market supremacy is going to heat up in the next couple of years.

The VoIP telephony business is intriguing since it allows the VoIP service providers to keep their costs low and pass on their savings to their customers. Vonage and Skype are the two most famous names in the VoIP phone card business. Vonage recently had its IPO, and the investors are optimistic about the future of this company. Vonage is planning to spend heavily in the next quarters to bolster its position in the VoIP market. Skype, now an asset of eBay, has other plans in mind. Skype understands that the next couple of years are critical for all VoIP service providers. The market is expanding fast, and a small mistake can lead to a disaster for a VoIP market leader. Skype has decided to take matters in its own hands, and it has planned out a very aggressive strategy to take market share away from Vonage and other VoIP service providers.

Skype has decided to offer free calls to the U.S and Canada to its service users for a limited time. This strategy will allow Skype to solidify its position in the VoIP market. Moreover, this move will strengthen the VoIP phone card business’ barriers to entry. In other words, small companies which are thinking of entering this market are now unlikely to do so because of the difficult task of matching or bettering Skype’s newest offer. In addition, this will be a huge blow for Vonage since it charges $25 a month for a similar service. Vonage is the leader in the “hard VoIP” market. It provides its customers with a piece of hardware that allows them to use its services. Vonage has been losing money for quite some time now due to its high marketing costs. With the introduction of SkypeOut, Vonage has to spend even more money to save its VoIP phone card business. Besides, Vonage will have to convince its investors that it is not helpless against the eBay’s newest wave of attacks. So eBay has certainly taken the upper hand in the fight for the supremacy of the VoIP market.

AOL and Google are also planning to add VoIP technology to their messenger services. So, Vonage’s position the VoIP market is expected to come even under more pressure in the upcoming quarters. Whether Vonage can come up with its own knocking out punch against its rivals is remain to be soon. But, the VoIP market wars are bound to get even more interesting in the upcoming months.

Panah Mosaferirad began his career as an IT. After 2 years in the IT industry, he started an online venture on eBay and Amazon. During this period, he sold numerous items online and mastered the strategic aspects of eBusiness. In 2006, Panah Joined the Fox school of Business and Management’s MBA program to study e-business management.

Panah Mosaferirad is a marketing intern for Pingo’s International calling card business that provides virtual VoIP prepaid calling cards online at http://www.pingo.com/aboutus.do

Article Source: http://EzineArticles.com/?expert=Panah_Rad
Tagging with: VoIP , VoIP service provider , Packet8 , VoIP Technology

Packet8 Review

Packet8 internet phone service is one of the top VoIP service providers in the United States and Canada. They are owned by 8X8, Inc., which is a U.S. company located in Santa Clara, CA. In business since 1987, 8X8 has made a significant contribution to the development and advancement of broadband phone technology.

VoIP (voice over internet protocol) phone service made its public debut in 1995, and 8X8 introduced Packet8 broadband phone service for residential use in 2002. In 2004, Packet8 introduced internet phone service for small to medium businesses, and was also the first VoIP provider to deliver video phone service. Using technologies that they have developed and patented themselves, Packet8 has become one of today’s best VoIP providers in terms of service, reliability, and market share. As a Packet8 user for over a year now, I can personally attest to their ongoing commitment to constant improvement and quality service.

Offering unlimited local and long distance service within the US and Canada for $19.95 per month, Packet8 is one of the lowest cost internet phone service providers in the USA. Great features like voicemail, voicemail to email, call forwarding, call waiting, caller ID, call return, and call blocking are available for free; and this is just a small sampling of the free features they give you! They are continually adding service enhancements and new features, all designed to work seamlessly with the Uniden 1868P whole house phone system as well as their videophone. Enhancements planned for summer 2006 are caller ID with name and a new soft phone service called Packet8 Softalk. A soft phone is a PC-based telephone; most of the larger VoIP carriers are now offering softphone service due to the huge popularity of the service that Skype is now famous for.

Packet 8’s main competitors are Vonage, AT&T CallVantage and VoIP service offered by local cable television providers. At $24.99 per month for Vonage unlimited residential service and $29.99 per month for unlimited local and long distance calling with AT&T, Packet8 is the clear leader when it comes to price. Unlimited internet phone service offered by cable companies is currently averaging around $40 per month, depending on the cable provider (cable companies often refer to VoIP telephony as "digital phone service"). All these VoIP carriers offer similar free features and unlimited local and long distance within the USA and Canada. Vonage now includes free calls to Italy, France, Spain, UK and Ireland in their unlimited plan, which makes Vonage service the better buy if you often call these countries.

Although VoIP usage statistics vary, it is estimated that there are around 48 million internet phone users today. Within the next 5 years the number of people using VoIP is projected to grow to 100 million. Due to the portability of VoIP, the tremendous cost savings vs. traditional telephone “land lines”, and the included features available for free – VoIP is here to stay.

VoIP is so easy to install and use that the hardest thing about broadband phone service is choosing a provider. No matter which VoIP service provider you choose, you can’t go wrong as long as you stick with an established, progressive company that offers excellent customer service and has a reputation for quality. Depending on your needs, Packet8 VoIP service may or may not be the perfect fit for you, but it is definitely worth considering.

To learn more about Packet8 VoIP: http://www.saveonphoneservice.com/packet8.htm To compare top VoIP providers: http://www.saveonphoneservice.com/Internet-phone-service-providers.htm. Not yet ready for VoIP, but want to save money on phone service? Check out some good long distance alternatives at http://www.long-distance-savings.com

Article Source: http://EzineArticles.com/?expert=Debbie_Jacobsen
Tagging with: VoIP , VoIP service provider , Packet8 , VoIP Technology