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ARTICLE · 24 APRIL 2008

VOIP The Next Level: Part Two

Grant Thornton UK LLP
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Since the first commercial exploitation of Voice over Internet Protocol (VoIP) in March 1995, with Vocal Tec’s ‘Vocal Chat’ software, VoIP has irreversibly altered the traditional value chain in the telecommunications industry.

United KingdomMedia, Telecoms, IT, Entertainment
Sarika Patel
Sarika Patel

Incumbert Operators – Unexpectant First Moves?

"If you can't beat them, join them." Anon

With the launch of their own VoIP services, this seems to be the tactic incumbent operators have adopted. AT&T's 'CallVantage' and Verizon's 'VoiceWing' proprietary offerings provide incumbents with exposure to VoIP. BT similarly launched its 'Total Broadband' product in early 2006, which provides free off-peak calls through its 'Broadband Talk' VoIP service.

Incumbent operators are aiming to offset declines in traditional voice revenues, retain customers and significantly reduce costs. Furthermore, by switching to VoIP, they are able to offer the value-added services that an IP platform makes possible, as well as charge for them.

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