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April 17, 2007

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alkrauza

The competition for VoIP customers has only begun. And now the Big Boys are seeing the potential marketplace and are rolling up their sleeves and getting into the game.

As Vonage soon found out, with a business model that is based on customer acquisition and profits only based on that customer's monthly payments, the competition for price will soon whittle profits to baseline and only the giants will have the resources to survive.

Vonage's cost of $200+ per customer acquisition is outrageous and unless they had another profit stream, was destined for desaster.

A sleeper VoIP company, AdCalls, Inc. has a business model very similar to Google and Yahoo. If Google and Yahoo can make Billions giving away FREE email and search engines, supported by Advertising; the AdCalls patent pending business model should do very well giving away FREE PC2Phone Long Distance supported by Advertising. This will be a company to watch.

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