VOIP Blamed for Revenue Decline

The traditional telecoms are taking notice of VOIP, and it isn’t in a good way. Many industry executives are blaming the new technology for their own falling revenues. As the popularity of internet calls continues to grow, it is likely that the main source of income for the telecoms in the near future will not be voice calls.

Since VOIP is still a new technology, there are complications with the services. Dropped calls or unclear voices are two of the main concerns that subscribers have with VOIP. It would be wise for the telecoms to take note of the problems and address them with their own services.

Telecoms could easily compete with VOIP through price reductions of existing services or other incentives. The reliability of land line phones is a strong selling point that the communications industry doesn’t seem to be pushing.

In the struggle to compete with VOIP, much of the telecom industry is looking at new services as the answer to the situation. Many other companies are focusing on “bundling” services – voice, internet, and television – as the key to survival. Some are looking at mergers with mobile operators as the only way to survive the internet invasion.

Some experts are surprised at the focus VOIP is receiving. They feel that wireless (more widely used and accepted in most regions) is a bigger threat than VOIP. Still, if the focus does shift to innovation then in the end it should be a good thing for the consumers.