VoIP, a Battle of Relevance
Barablu, ConnectMeAnywhere, EQO, Fring, Gizmo, Hullo, iSkoot, Jajah, MiNO, Nimbuzz, Rebtel, Talkster, TalkPlus, Truphone and Yeigo are just some of the VoIP providers I’ve seen. All of them are fairly similar, with at least one or two other companies like them, and most are exactly the same. It almost seems like anyone with a pulse and an asterix installation is starting their own. I understand why so many people are hopping in the game. International calling is nearly a $300 billion industry. However, they all seem the same, and it seems hard to pick a winner except based on the size of their bank account. Not to mention Vonage, Comcast, and Time Warner Cable loom large as land-line VoIP providers.
The general formula for these centers around their main value add, cheaper long distance calls. All of these companies offer cheaper long distance calls by bridging two local calls across cheaper IP networks. Basically, instead of calling your friend in the UK, you call the VoIP provider on a local number and the provider transmits the call to a local station in the UK, calling out to your friend on a number local to them. Total cost = local call + VoIP cost + taxes etc.
To encourage adoption, most providers drop the VoIP fees for calls to other users of their service. There are free (as in beer) calling plans for people with WiFi and one of the multitude of straight to internet phone programs. BTW, a call to the UK from the US will cost about 2-3 cents a minute.
The thing that separates these guys from the international calling card startups, is that they come with some management tools. These come as simple WAP access to your account, or full blown applications for select handsets. These apps let you manage a contact list and make calls more naturally. Better one’s easily migrate your current address book to their system. Still, others throw in IM and messaging services.
VoIP providers also differ in one other key area, marketing. Some come in plain vanilla, while others jazz up their sites, targeting teens apparently excited at the idea of saving their parent’s minutes on their calling plan.