VoIP - The fear of telcos
It is clear that Voice over the Internet (VoIP) is threatening the business model of telecommunications companies, due to its convenience and cheaper costs.
Currently, many of the Asian players live in denial - they just don't see it as a major disruptive threat. Now, telecommunication companies in the Philippines get a first taste of it.
"The National Telecommunications Commission recently came out with a draft policy that would allow even non-telco players to provide voice calls through the Internet for as low as 10 US cents per minute.
Major telco players are currently charging an average of 40 US cents per minute."
What cards are played out? The usual, as you can see when you read on:
"PLDT said VoIP providers would encroach on the operations of legitimate players, increasing the risks of non-telco companies bypassing the networks of telcos and allow foreign carriers to provide services in the country.
"The telecommunications industry may collapse because the [telcos'] stable source of revenue, like voice service for both domestic and international, and inbound and outbound calls, which are sources of subsidy to local exchange carriers, will be eaten up by the [VOIP providers]," said PLDT in its position paper."
It is better to live in denial - but when there is technology, there is a way. Market players might get regulation to prevent the entry of VoIP providers, but when there are programmes availble, such as Skype, they better get into the frame to adjust their business model. Otherwise, their customers adjust the model for them - and then, it might be too late!
(By Asia Business Consulting)
Currently, many of the Asian players live in denial - they just don't see it as a major disruptive threat. Now, telecommunication companies in the Philippines get a first taste of it.
"The National Telecommunications Commission recently came out with a draft policy that would allow even non-telco players to provide voice calls through the Internet for as low as 10 US cents per minute.
Major telco players are currently charging an average of 40 US cents per minute."
What cards are played out? The usual, as you can see when you read on:
"PLDT said VoIP providers would encroach on the operations of legitimate players, increasing the risks of non-telco companies bypassing the networks of telcos and allow foreign carriers to provide services in the country.
"The telecommunications industry may collapse because the [telcos'] stable source of revenue, like voice service for both domestic and international, and inbound and outbound calls, which are sources of subsidy to local exchange carriers, will be eaten up by the [VOIP providers]," said PLDT in its position paper."
It is better to live in denial - but when there is technology, there is a way. Market players might get regulation to prevent the entry of VoIP providers, but when there are programmes availble, such as Skype, they better get into the frame to adjust their business model. Otherwise, their customers adjust the model for them - and then, it might be too late!
(By Asia Business Consulting)
posted by Andreas @ 1:55 pm
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