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Broadband & ISPs

By Tim Ferguson

Published: Thursday 14 December 2006


Name

Alvin Ernest


Location

Northamptonshire


Occupation

Consultant


Comment

I am a big fan of VoIP, in fact I like anything that improves the quantity and quality of life at a reasonable price...

But, lets be very clear... VoIP is displacing TDM revenues and in so doing it is reducing ARPU, with its promise of free calls and lower tariffs... While its cost maybe lower, its profit contribution is also lower... it is a excellent disruptive technology and favours the challenger operator...

Don't get me wrong, I think its a good thing but we must also tell service providers that VoIP on its own does not constitute a business (like TDM voice was) it must be complimented with other services - a triple or quad-play menu is the minimum....

So in seeking an NGN architecture we must not think of dimensioning or catering solely for VoIP... Yes its a part of the mix but only part of it...

In seeking technology for the NGN, service provider would do better to dimension and design for video, especially "video-telephony"... There are lots of technology platform being introduced into the NGN without any consideration for "video telephony."

Further service providers must not focus on VoIP as a growing market, they must see it as a customer acquisition opportunity; real profitability will came from plurality in its service mix...



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