Residential Phone Services in USA to be dominated by Cable Co

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After a long time, this is my opinion post on recently released numbers on how Cable Companies such as Comcast, Time Warner kicking Vonage, Lingo, PhonePower out of market.

DSLReports noted that due to variety of reasons, Leading independent VOIP Service providers such as Vonage, Viatalk, Lingo VOIP, Phonepower had a tough time this year with mainstream Cable Companies made them sweat for every new consumer.

The Report says, "VOIP Subscriber growth for the one-year period ending in the first quarter of this year was less than 200,000 for independent VoIP companies; this amount equals less than one fifth of the new subscribers from the previous year. In contrast, cable VoIP subscriptions increased by over five and a half million in the same time period."

Why VOIP Companies are failing but Cable Companies are shining?

Average Consumer in USA (even in rest of the world) is an noob (newbie in simple terms) when it comes to Voice Over Internet Protocol (VOIP). You would be amazed to see even the senior managers in Large MNC's are completely unaware of VOIP. With over 70-80% of novice users in the market, VOIP for them is rocket science.

The Obvious fact is VOIP companies can only provide a Phone Line but Consumers are often tricked in with 3-1 plan which cable companies can offer. Home Phone Service + Cable TV + Internet. Now if you are a new customer or one who wants to Switch, you would better off looking at one single deal rather than 3 different companies managing your needs. Makes sense?

VOIP Companies can only do pure VOIP, they can't do Cable + Internet. Boom, there they loose the advantage. Even though at times, VOIP companies might be a better option with QoS (Not necessarily with every provider) and few other value added services, these things are easily overlooked.

Currently Vonage and Lingo VOIP are trying to establish themselves in this ever changing market which according to me would be dominated by Cable Companies sooner or later. I would see more consolidation or sell-off in this space. Most of the Independent providers would be sold off to large Cable companies or just pack their bags.

One of the other things most VOIP Providers are beaten badly is Cash Back Offers. Comcast is offering $325 Dollars + Free Equipment on their Comcast Triple Play offer.

I won't be surprised to see bad news coming from camps of Vonage, Viatalk. When, only they know that well but we can say coming years would be tough time for the local USA VOIP Phone Service Providers.

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