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    « Cablevision Grows VoIP Biz | Main | CNET On VoIP »

    May 12, 2004

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    Craig Poschmann

    I enjoy reading your comments. As a shareholder of the public company 8x8 (which is Packet8), I, still, am deeply concerned in the company's utter failure to market to anyone other than people who 'run into' Packet8 on the web, or perhaps 'run into it' via a shareholder like myself. Clearly, not all company's out there have the money that Vonage has, and continues to get by going to the VC marketplace; however, 8x8, through its entire existence and product lines which have basically been discontinued (the chip segment, other various end-points and hardware and software solutions, and Centile-PBX product, which has now been ingrained into the Packet8 Virtual Office) have always failed due to one thing and one thing only - a completely dismal understanding of BRANDING & MARKETING. Mass marketing to Santa Clara valley area is hardly marketing as far as I'm concerned - there's millions of people in Boston and New York and Miami and Chicago and Atlanta, that have never heard of this service, because of this lack of understanding how to market to consumers. And, as a shareholder, I would hate to see, yet another leading-edge technology like Packet8, the Virtual Office, and the Videphone go down the tubes because 8x8 still doesn't get it: playing off of Clinton, 'It's about the branding, Stupid.'

    me@nowhere.com

    JFAX offers a phone number and free incoming faxs!

    me

    I think the Telcos (ILEC) are screwed. I think that by years end you probably will see a company sell a device for free local calls in and out. the better the devices the more migration to a SIP sollution.

    eric zenner

    I think that inbound cost are free to the carriers like Vonage, SipPhone.com offers phone numbers to their customers so that can take unlimited inbound calls but i am curious what it really cost to initiate a call, likewise i enjoy the site.

    Andy Abramson

    Vonage already has a local plan.

    FYI--your email address is bouncing.

    robert myles

    Andy:

    Thanks, I use vonage at home and have zero problems with it. My wife doesnt even know we dont use verizon anymore. So I am an advocate. I watched the prices drop on my service a month after we got it.

    From what I understand is that "inbound" calls cost vonage nothing. Outbound local calls cost "vitually" nothing. At some point it would seem to be the ultimate disrupter "starup" is going to introdue the Local free plan? to attract
    massive amount of users off the PTST overnight with another revenue model down the road to cover the cost (minial) for the local phone charges?

    Andy Abramson

    Robert,

    The current view is that voice termination is so
    inexpensive that selling it for a flat rate is where
    both VoIP and PSTN will end up. If you note, the ILECs
    like SBC are already selling flat rate long distance
    and local so flat rate for VoIP is nothing new.

    The money will be in applications and services, beyond
    simply voice mail, conference calling, three way
    calling, call waiting and caller ID. Those are
    basically class five switch features native to VoIP
    now.

    Next Gen apps like call transfer from VoIP line to
    cell phone, VoIP over WiFi (both of which are here
    today) as is termination to endpoints other than
    phones (i.e. PDA's) are early examples of what's to
    come.

    The selling time and features in buckets is what is
    currently the model. As more applications are
    developed, and deployed, which is why SIP is better
    than h.323 and MGCP, you will start seeing carriers
    begin to more differentiate themselves from one
    another.

    Vonage has the early lead due to marketing which they
    do very well. Packet8 has a nice platform but clueless
    marketing efforts. AT&T is really doing it all
    correctly. Great marketing, incredible service.
    Sensational quality.

    Hope this helps,


    Andy

    robert myles

    I enjoy reading your posts....i am a stock broker
    and have been watching all these headlines on voip.......it seems to me by reading your site and http://www.telepocalypse.net/ that there will
    not be any viable service model for voice, it will be an aplication of sorts over existing broadband connection, if that is the case it seems that vonage and 8 by 8 and the telcos all loose to a free model. I am curious , i read on
    one of these sites that the cost to interconect to the ptsn is so cheap that it is hard to justify billing? is that true?thanks again .rm

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