VOIP: A Black Hole?

By Mark Evans | Published: December 26, 2004

VOIP has been described as a lot of things, but is it a “black hole”? According to Nadahl Shocair, CEO with DeTeWe UK, it's exactly that because it was will “take away” 30% to 40% of the US$450-billion of cash flow generated by global incumbent carriers over the next thee years.
Shocair believes VOIP will hack away at the balance sheets of incumbent carriers as new players such as Vonage and Skype capitalize on the technology, and the business market migrates to IP.
If Shocair was looking for some media coverage, his “black hole” comment certainly worked. While I'm not sure about the accuracy of his math, Shocair does inject some much-needed skepticism into the hype-riddled VOIP market.

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One Comment

  1. Rob Hyndman
    Posted December 26, 2004 at 5:43 pm | Permalink

    Wait a sec – why when Walmart sells a $30 DVD player made in China that sucks the life out of some assembly worker in Kentucky is it “good for America”, but when Vonage comes along and sells VoIP at a significant discount to incumbent services providers it's a “black hole”?
    This is really simple, isn't it? The Vonages of the world, if they have a better, cheaper solution, deserve the business.
    What's missing?

    Reply

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