August 11, 2006

Cable VoIP vs Pure Play

Apparently cable VoIP is giving providers such as Vonage a run for their money. That's because for a few dollars more per month, customers are getting cable (data + video) plus telephony, as well as other features that pure play VoIP cannot provide. [via CED Magazine]

This IMS (IP Multimedia Subsystem) architecture promises far more than pure play VoIP. One of the most important expected features, to some people, will be a global phone number, which can be used anywhere and can be called from anywhere.

While Vonage is still in the lead in volume, it's probably due to the extra features why cable companies are leading in new VoIP subscribers, and why one company, Time Warner, isn't far behind in total subscribers.

On the other hand, I know people who do not watch TV or use the Internet, but do have a need for a telephone, without any "global number" feature. There's always a market for basic telephony. It just may no longer be worth the amount of monthly advertising that companies like Vonage are said to spend (US$20M).

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