Jon Arnold is analyst firm Frost and Sullivan’s VoIP program leader. In I want my VoIP he writes:
So why are the RBOCs (regional Bell operating companies) and Canadian incumbents getting serious about VoIP now? Competition.
So why are the long-distance carriers (IXCs) getting serious about VoIP now? Competition.
So why are the cable operators getting serious about VoIP now? Competition.
That’s it, plain and simple. The tough part that I see is that so far the competition is about cheap long distance. None of these guys are differentiating themselves appreciably from any of the others. What does that portend? Falling prices followed by a shakeout. Unless we start to see some of the promised features of VoIP getting serious deployment, look for VoIP industry failures by middle of 2005. Packet8 and Net2Phone will be two of the earliest.