March 28, 2006

Where are the VOIP profits?

You hear about new entrants into the 'probably' profitable every other day. Lycos is the latest example. However, where are the profits? Who will earn most?

The number of subscribers is increasing in all markets around the world. Ad-supported services like Lycos get users in droves. The number of paying subscribers is also on the rise. But you have to stop and think: is the market really that big and generous to support so many players? One fears that this time across, the likes of Cisco and other equipment providers will be the biggest gainers, just like the dotcom boom/bust around 2000.

Providers must look at other sources of income to survive the imminent shakeout.

Via Australian IT

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