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Before undertaking any large project – especially one that involves new technology like VoIP – organizations need to know the ROI on which to base their cost-benefit analysis. Historically ROI has proven to be a good measure which indicates if a particular project is feasible or not but in the context of VoIP, ROI can [...]

How is VoIP ROI Measured?
Android VoIP users can now check out for updates on SIP calling on the Android OS. We’ll post full updates there about the new Gingerbread release. Stay tuned!

siponandroid launched!
Unified Communications is the latest buzzword within the IT industry, even though different vendors provide their own spin on it. It makes it difficult to pin down what UC does exactly and quite a few people assume that the terms VoIP and UC are interchangeable. Nevertheless the reality is that unified communications does not need [...]

UC – The Natural Evolution of VoIP

Draconean International Laws Threaten VoIP

Throttling VoIP Services

Throttling VoIP Services

As a communications technology, the power of a system like VoIP is compounded by the number of people who use it. This phenomenal is called “network effects” and we see it in play around us every day. Take Facebook for example. Its greatest value is not the site design, nor the site features. Rather, the power of Facebook comes from the fact that it has the largest number of users. So if you want to communicate with someone on a social network, Facebook is the most logical choice all things considered. Such is the power of network effects. For systems like VoIP, network effects involve being able to communicate with other people using the same technology. If a large chunk of users becomes inaccessible to you, the inherent value of the service decreases.

So far VoIP penetration in the US has lagged behind that of other countries in the EU. Perhaps because of this, telecom carriers and ISPs in the US have not needed to try and take serious measures to curb the growth of VoIP services that can threaten their traditional income streams. Such is not the case in countries outside the US however. We have repeatedly seen that nations in the European Union are not exactly in favor of net neutrality. Many ISPs throttle or block VoIP services entirely and some of them have even toyed with the idea of charging extra for VoIP traffic to preserve the income streams that they traditionally receive from land lines and wireless contracts. A few nations however take the extreme step of banning all VoIP technology outright. Ethiopia is the latest example.

What happens when all the users of VoIP from a particular country lose their ability to take advantage of the Internet for voice communications? It means that any businesses that have offices in those particular countries have lost the value of the VoIP systems that they may have installed over there. If it’s an important country for their operations, VoIP as a whole loses its value. In other words, network effects decrease.

If you think that Ethiopia is a negligible country in terms of importance to the VoIP world, consider that other nations while not having banned all VoIP technologies, have significantly crippled the power of VoIP within their borders. India for example houses 1/6th of the world’s population and doesn’t allow VoIP gateways within its borders from servicing telephone numbers that originate within the country.

As long as policies like this continue, the technological benefits of VoIP will be restricted only to those developed countries that are not afraid of new and innovative services. This issue is closely tied up with the matter of Internet neutrality. The next few years are going to be very interesting to see how nationstates around the world respond to a changing environment and whether or not they will embrace new technologies like VoIP as a replacement for the old.

1 Comment »

  • loco
    October 2, 2012

    i have no problem with state owned enterprises. i think the governments should step up and make a voip of their own. how hard can it be? i think its a win win situation, because the customers will feel comfortable with a brand that is familiar to them. also, the reason why the usa doesnt do voip is because most americans dont know anyone overseas, so why would they make long distance calls? most american cell phones have unlimited nights and weekends, so u dont need voip.

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