VoIP News - Vonage Tries To Solve Its Problems With IPO

Vonage announced on Feb 8 that it intends to issue an IPO in an attempt to raise $250 million. This move underlines some of the problems mainstream VoIP providers are having.

The problem for Vonage is that while its subscriber base is growing, it is still losing money. According to the IPO filing, Vonage lost $189.6 million on sales of $174 million in the first nine months of 2005.

The company spends so much on marketing that it is almost impossible to make money from low spending subscribers. Average single line subscribers paid $26.73 per month in 2005. But the company spent $213.77 per subscriber on marketing. That means it would take more than 8 months to recoup their up front marketing costs.

Market share is also shrinking and the competition is ramping up. Google, Yahoo and Microsoft are all aggressively entering the market.

They are also getting squeezed on the expense side. Currently VOiP providers like Vonage offload the carrier costs to internet subscribers. But the major telcos are lobbying hard for approval to charge providers like Vonage extra tool fees for the ramped up level of service required to make wide scale VOiP possible.

Pure VOiP providers like Vonage are eating into the traditional market of the telcos. So it seems almost inevitable that the telcos will retaliate in various ways to either hold on to their customer base, or convert customers to their own services.

**Other developments in VoIP

Microsoft - Gates and company will be entering the VoIP market aggressively in 2006. The new version of MSN Messenger, called Windows Live Messenger will have advanced VoIP capabilities, and an interface with the traditional phone system through an agreement with MCI. This alliance with MCI is Microsoft's way of avoiding the threat of telco toll charges.

As with Skype, PC to PC calls will be free using Windows Live Messenger. Microsoft and MCI claim that PC to landline calls will cost only a few cents a minute, and much less than some other alternatives currently being developed.

Google - Much like Microsoft and Yahoo, Google is putting the pieces together to offer a comprehensive PC to PC chat/voice service, as well as a PC to landline service. That would take Google just one relatively small step from becoming a complete VoIP provider.

Google released Google Talk last August, and recently announced the release of Gmail Chat which integrates GMail and Chat. For voice capability, users still have to download the Google Talk client, but it is just a matter of time before there is one client for all three services (mail, chat, talk).

The company has also confirmed that it is working with VoiceOne, a Florida company owned by VoIP Inc. VoiceOne is providing Google with "click-to-call" services. This free service lets people speak directly to Adwords advertisers who come up in searches, with the costs, presumably, being covered by advertisers.

Yahoo - Yahoo announced in December that they will offer two new fee-based voice over IP services so customers can make voice calls from a PC to a telephone and receive phone calls on a PC.

The new VoIP services are called Phone Out and Phone In and are part of Yahoo Messenger with Voice.

Phone Out will let users to make calls from a PC to traditional or mobile phones in more than 180 countries. Projected cost will be $0.01 per minute to the U.S. and less than $0.02 per minute to more than 30 international countries.

Phone In will let users receive calls on a PC from traditional or mobile phones for $2.99 a month. Multiple phone numbers will be available for travelers, and phone numbers in different countries will be available so people who call them from that area will only pay for a local call. This is very similar to Skype's current offerings (see below).

Skype - EBay bought Skype in 2005 for $2.6 billion, so chances are they have big plans for the service. Skype offers a range of VoIP services, but so far all require at least one user be tethered to a PC with a broadband connection. Services include free computer-to-computer calls, as well as paid calls from a PC to the public network (SkypeOut) or public phone to PC (SkypeIn).

With the release of Skype 2.0, the company has announced a number of enhancements to their core service such as teleconferencing capability, and video calling. Another useful service is Skype VoiceMail. Callers from anywhere can call your number and leave a voice mail on your computer.

Judging from their web-centric approach to VoIP, Skype does not have plans to directly compete with the telcos for traditional phone business. However, they are well-positioned to offer click-to-call services to everything from community and dating websites, to EBay itself.

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VoIP - Sometimes Not An Easy Choice

Previously I wrote that VoIP was a good choice. If naked DSL or DSL without phone service is not an option for you, then VoIP can still be a good choice for your second or even third phone line. It sure comes in handy for your teenage children not to mention a home office. I recently sold service to a gentleman who wanted VoIP specifically for the ability to have a virtual number. His daughter recently went off to college in another state. He purchased VoIP service and signed up for a virtual number. He got a virtual number in the same area code that his daughter was in. This allows his daughter to call him at local charges vs. the long distance charges she would normally have to pay. Kudos? to him for making his decision. Just another great benefit VoIP has to offer.

This weekend I was speaking with a friend of mine who recently purchased a home computer. He knew about my business and wanted to know his options for internet access. He also knows that I'm not just a big fan of VoIP but that I myself use it. His primary objective was internet access, secondary objective was VoIP. Here's where the choices, for him, weren't so straightforward.

First off, his current phone provider is the local cable company. He doesn't use cable TV, rather he uses satellite TV. This current scenario meets his needs. He's a huge sports fan and not about to give up his satellite TV because of the sports packages. Do you know anyone else in this type of situation? I told him that 'normal' DSL is out of the question. Our local RBOC won't allow DSL access without phone service. What about naked DSL? Yes, my company has recently signed up a couple providers offering naked DSL, but the price is a bit higher. About the same as cable internet access would cost when you don't have cable TV service. In both cases, naked DSL and cable access, the monthly fee was more than he's willing to pay.

Well then, that was our dilemma. His existing setup won?t allow for either DSL or Cable without him spending more than he wants per month. A switch to cable TV service with cable broadband access won't work for him either. He just doesn't want to give up the satellite TV sports package. So what to do?

His options, as it were, are limited. I asked about his phone habits. How many local and long distance minutes do him and his family use? His child is fairly young and his wife?s family lives in the area, so long distance minutes don't come into the picture. That leaves local calling. I have a bundled service I could offer him, but guess what, YEP, the RBOC 'will' allow a competitor to offer local service BUT the RBOC will 'not' allow that competitor to offer DSL.

He was trying to avoid the local RBOC, which is why he switched to cable phone service a few years back. Now, although he does have choices, the only thing to meet his budget is to cancel cable phone service and go back with the RBOC. Once phone service is active, then I can get him DSL access. DSL access from the local RBOC?s is really dropping in price so he can get his first 6 months at a very reasonable price. Even after that 6-month period, the rate is reasonable as well. This solves his primary objective to get high-speed internet access but doesn't solve his secondary objective to get VoIP. He has no use for a second phone line so that's not an option.

Since the FCC has mandated that RBOC's need to offer naked DSL in roughly 3 years time, that's actually going to work for him. After that 3-year timeframe his young child will be in high school. He'll have more choices in just a few years. So, for this case, he doesn't get everything he wants at the budget he can afford. Rather he solves his primary objective of internet access for now and will go for VoIP once the prices of naked DSL come down.

Although this is doable, it's really a shame. It may be rare and it was the first time I've personally run across this type of situation. Phone from cable, TV from satellite works great for him, but because the phone companies and cable companies don't play well, he looses. I will show him how to make his long distance calls from his computer, but for VoIP as a primary phone service, he?ll need to wait. Sometimes the decision to use VoIP is not such an easy choice. (For now)

FullService Broadband provider. Our free service is possible through Try Right Technology, Inc. We provide unbiased and informative information on broadband and communication products

VoIP - Good Choice

Using DSL for your broadband access? Naked DSL (DSL without primary phone service) still not available in your area? Don't discount VoIP phone service just because you cannot discontinue your existing primary phone service. VoIP can be a huge help to those with home-based business, satellite employees needing a business line and of course families with teenagers! (just to name a few possible candidates!)

Tired of the high phone bills? For some the high costs are because of one or more of the categories mentioned above. This is 'exactly' why you should not discount VoIP for your second or third line. Imagine the looks on your teenagers face when you tell them they can get their own phone complete with their own phone number, voice mail and unlimited local and long distance calling! WOW - problem solved. For satellite employees, mentioning to your boss you can cut your existing phone expense will also put a smile on their face. For the home based-business ANY cost savings certainly helps. Now you can make those long distance calls without worrying about the expense.

If you're putting off VoIP because you cannot use the service 'exclusively' you still just might be able to save money every month. Your home office or employee business line or the line for your child can all be easily converted to VoIP.

There are ?some? providers offering naked DSL so you should first check with your local telephone company. Ask if they provide this service. If not, you can visit our web site as we?ve recently added a couple providers that offer naked DSL. You can find them in our VoIP section.

If your goal is to eliminate your local telephone company all together and you don?t want to wait for naked DSL to become widely available, then perhaps it?s time to consider switching your residential broadband access to cable. If you?re a cable TV subscriber the monthly fee is usually lower than if you were not. In either case, run your own numbers. Take your existing phone bill and add the cost of cable broadband. What?s the total? Now add up the cost of cable broadband and VoIP. Compare the two numbers. Paying a little more for your cable broadband access just might be offset with the cost savings achievable through VoIP. Run the numbers and decide for yourself. For more information on VoIP technology, visit our site, search the net, do whatever it takes to get the information you need to make a more informed decision.

VoIP is a good choice and a good way to save money.

FullService Broadband provider. Our free service is possible through Try Right Technology, Inc. We provide unbiased and informative information on broadband and communication products and services.

The Aim To Standardize VoIP Protocols

Voice over Internet protocol (VOIP) is a remarkable technology that lets us talk to one another from our home computers. It provides an efficient and flexible way for us to communicate at work and at home, and the cost savings versus conventional telephone services are incredible. It requires little upfront investment, and you have the ability to travel with your phone number all over the world. It is a technology that almost seems too good to be true. As with any relatively new technology, though, there are technical kinks with VOIP that continue to need refining and development in order for the technology to reach its fullest potential as a replacement for the current telephone systems that we are accustomed to using.

At the beginning of a VOIP phone call, there is an analog phone (in use with an ATA), an IP phone, or software that converts data from analog to digital and routes the call to an endpoint. Along with these pieces of equipment, there are protocols that are employed to get the job done efficiently. A protocol is a set of rules that control data transfer between two points, in this case, from the placement of a phone call to the destination. Protocols are put into use by any combination of hardware and software to define real-time communications performance.

There are several VOIP protocols used at this time that mark out which programs (that transform the data) connect with one another along with the network. The most common protocol being used for VOIP is know as H.323, which was created by the International Telecommunication Union for the purposes of videoconferencing. This protocol is actually a group of several specific protocols that provide provisions for videoconferencing, data sharing, and audio transmission (VOIP). However, since it was not expressly designed for VOIP, there are often compatibility issues with its use.

A newer protocol has come out known as Session Initiation Protocol, or SIP. SIP was developed specifically for VOIP, and it is less complex than H.323. Yet another protocol used for VOIP is known as Media Gateway Control Protocol (MGCP). It focuses on destination control, and is intended to be used for supplemental features such as Call Waiting. A big problem arises because these three protocols do not always work together very congruently. This is often a problem when placing VOIP calls between different networks that use different protocols. And since there has not been yet developed a uniform set of standards for protocols to use for VOIP, problems are likely to continue until they are established.

Despite the technical glitches that can be encountered in using the technology to place phone calls, VOIP is still far more efficient, accommodating, and cost effective to what we are used to in telephone communications. The direction in which VOIP is heading hints that it is poised to one day replace our traditional telephone technology altogether. As with any technology-driven product or service, developers of VOIP will likely continue to improve upon current standards of VOIP and its protocols, further improving the technology for widespread use. This will provide users of VOIP even greater efficiency and reliability when they want to make a telephone call.

Learn the essential information for picking the Voip provider / services at Voip Protocols

VoIP Options for Business

VoIP makes a great option for business because you can save money. Many providers offer special packages strictly for business use. Different products are available such as fax lines and call forwarding.

When shopping for a service, you will need to take a few factors into account. This includes whether or not you want your provider to also service your internet connection, or if your computers will be on a network. Here is a compiled list of potential service providers to help you find the best package to suit your business needs.

Vonage offers two packages for their small business customers. The Small Business Basic plan is $39.99 and allows for 1500 minutes of calling anywhere in the U.S., Canada, and Puerto Rico. The Small Business Unlimited package is $49.99 and includes unlimited calling to those places. Check out their website (www.vonage.com) for information on their additional features and international calling rates.

Verizon has a lot of options for business. They can accommodate small, medium, and large businesses. Their rates vary based on situation and location, so it is best to visit their site (www.verizon.com) to find the options that are right for you. You can also specify packages that include Verizon DSL and VoIP.

Lingo's business packages start at $49.95 a month for unlimited calling to the US, Canada, Western Europe, and any phones within the Lingo system. Service also includes a free fax line and other features such as three-way calling. They offer your first month free as a trial. Simply cancel if you are unhappy with their service. For more information browse their site at www.lingo.com.

Sprint also offers VoIP options for business. They offer options for businesses including home offices, small business, medium businesses, and full scale enterprises. Check out their options and packages at www.sprint.com/business.

Mike Bell is the webmaster of http://www.VoIP-Journal.com, a site devoted to providing users with voip news and information

VoIP Problems?

Well of course there's VoIP problems, although I think problems is too strong of a word. Instead I would call this VoIP issues. (Just semantics? maybe, read on!)

Some may be old enough to remember making long distance calls where there was static or crackling on the phone line connection. Maybe you remember having to speak LOUDER in order to be heard on the line. Was that a problem? Maybe to you it was but to the companies providing the service, it was a merely a technical issue that needed to be addressed. The issue was addressed and resolved. Now you expect this high quality service right?

Ok, what about cellular phones? Maybe you're old enough to remember when calls were dropped or barely audible. Maybe you remember lugging around those heavy phones. This was a time when a cellular phone was just that, a phone! Was this a problem? Maybe to you it was but to the companies providing the service, it was merely a technical issue that needed to be addressed. The issue was addressed and resolved. Now? Well, there's not too many cellular phones that are 'just' phones. You can surf the internet with them, take pictures, record short video clips, change the ringers, store your address and phone numbers, etc.

For both these 'problems' above, it was a relatively short time frame between 'issue' and resolution. We can draw comparison after comparison between technology and technology issues. I could start talking about echo cancellers, VoIP gateways, multiplexors, etc. and the current circuitry vs. the research and new circuitry on it's way, but that's not the point of this article. The point is simply that 'yes' there are issues with VoIP but also, 'yes' issues are to be expected and 'yes' issues will be resolved.

Some of the most common quality issues are echo and delay. I myself use VoIP over my residential broadband connection and frankly I think it's just fine. I like the service and quality of calls, but yes, at times, the echo and delay can be annoying. This is usually infrequent and not worth me canceling my service. The point I'm trying to make here is that, for me, it's acceptable. Why? Because I understand that this is 'relatively' new. I understand that equipment manufactures are building better technology to address these issues. I understand that the popularity of VoIP will expedite the issue resolution. I've worked in information technology for over 20 years now and certainly understand this progression in technology.

Other issues are in the E911 service and of course there's issues with most residential DSL subscribers. Both these issues are directly with the existing phone companies. The FCC is already involved in both these cases and I believe it will be sooner rather than later for these to be resolved as well.

I for one do have E911 service and I am not a DSL subscriber. So E911 for me is a non-issue and using cable access eliminates having to keep my local telephone company for my primary phone service.

The bottom line, for me, is the cost savings. The cost savings over shadows the occasional echo and delay. E911 has already made its way into my area and using cable internet access removes my dependency on the local telephone company.

VoIP can be a great way for you to save money on your phone service, but don't go into this blindly. Most consumers are intelligent enough to understand the progression that occurs with any technology. It's pretty good as it is and yes I would agree it needs to be better. I also know, heck I'm confident that the quality of service will continue to improve.

So what's the bottom line? Go for it. Find a service that will provide you with a free trial period. Take it for a test drive, kick the tires, etc. The higher your existing monthly phone bill is, the sooner you should try out this service.

It's ok to demand perfection, but perfection takes time. Change is hard and change takes time. Change is upon us and VoIP, in my humble opinion is here to stay. Give it a try, be realistic. Get the information, get your quote, get your free trial period, you really have nothing to loose and quite possibly money to save!

Provided by the FullService Broadband provider. Our free service is possible through Try Right Technology, Inc. We provide unbiased and informative information on broadband and communication products

VoIP Telephony Basics

VoIP (Voice over Internet Protocol) Telephony is the process of routing voice conversations over an Internet Protocol network, rather than through traditional circuit-switched telephone lines. The voice information is converted into digital data packets and then transmitted over an IP network, such as the internet, or a local area network.

The main advantage of VoIP is the fact that it is highly efficient, and thus very affordable. The cost of transferring digital information over an IP telephony network is significantly less than that of transferring analog information over a traditional telephone line. Because of this, VoIP users can make long distance and international calls to anywhere in the world, at any time of day, for a fraction of what an ordinary phone company would charge.

Although call quality was originally a problem for VoIP customers, this issue has improved greatly with todays progressing technology. Because of the fact that VoIP traffic goes over a broadband line, there is enough bandwidth available to allow for very good sound quality.

As anyone familiar with telecommunications would probably tell you, VoIP Telephony is revolutionizing the way that people around the world make phone calls. More and more people are seeing the benefits of VoIP, and the number of users worldwide is growing at an astounding pace.

If you have a broadband internet connection, and a touch tone telephone, you are fully equipped to set up your very own broadband phone system, and start making use of VoIP Telephony to save money on all your long distance phone calls.

For more information on the benefits of VoIP, and how you can start using it to save money on your phone bill, please visit http://voip-telephony.teleclick.ca/connect/ ...

Jeremy Maddock is the owner of a successful telecommunications news website http://www.teleclick.ca