Forrester sez Forget About the Price!

by alec on August 25, 2005

According to the latest Forrester Research from analyst Marybel Lopez, 70% of consumers have no interest in switching to a VoIP service.  "Providers still haven’t made a compelling case for their services".  Ouch!

"Offerings focus on price, not compelling applications," Lopez writes. "Today, providers lead with cheap unlimited calling packages that mirror circuit-switch offerings. Consumers aren’t going to switch providers just to get free ‘repeat dialing’ and ‘click to call.’ At this point, the only reason for consumers to switch would be to save $15 to $25 off their monthly bill."

The real promise of VoIP, according to Lopez, is the way that it liberates voice from the telephone, and from the telephone network. VoIP will go mainstream when providers and equipment vendors begin to think outside of the box and begin to integrate voice functions in consumer electronics, Web applications and mobile communications. Providers will have to embrace these trends to remain competitive.

Hallelujah!  That’s music to my ears.  Lopez’ prediction will also be compelling for forward thinking providers like British Telecom and Bell Canada, and to cable companies,  who have diverse offerings beyond just the core legacy voice assets. 

Alec Saunders is the Vice President of Developer Relations for BlackBerry make Research in Motion. This is his personal blog, with his personal viewpoints. Prior to this Alec was the CEO and co-founder of Calliflower — the easiest way to hold a meeting, online, on a conference call, or on the go. A double-decade veteran of product management and marketing, he spent nine years at Microsoft where he helped launch Windows 95, the first two versions of Internet Explorer, the Universal Plug and Play initiative, the push into home markets, opt-in email marketing and what might well go down in history as the very first direct email list ever.

Leave a Comment

Previous post:

Next post:

Alec on LinkedIn Alec on Twitter Alec on Facebook Calliflower on Youtube RSS Feed Contact me