The economic crisis will continue to shape the VoIP business in 2009. The most important trends of the year will occur either as a result of or in response to the downturn. Most will represent either providers' attempts to cope with the crisis or their failure to do so. Many will involve their efforts to help their customers cope, which is of course a way to help themselves cope as well. Several of the trends thus may be helpful to users, although some, like the first on this list, could pose problems. Either way, knowing which trends to watch is an essential first step in being prepared to deal with them. Here are eight to keep your eye on:
1. Ongoing shakeout among low-cost VoIP companies: It should surprise no one when more small VoIP companies go under or get absorbed in 2009, as happened to EQO Communications Inc., Jangl Inc. and TalkPlus Inc. in 2008. Many such startups offer similar sorts of cut-rate calling. More important, most are operating on timetables that no longer work. Their original plan was typically to add features and users until they hit the magic point where viral growth explodes. They could then make money through one of several methods, including advertising, for-pay "premium" features or large volumes of prepaid long-distance call completion.
Now, most startups don't have time for that. The downturn means they'll have to wait a lot longer than expected to reach viral critical mass. Potential new investors will hesitate to put up cash or will insist on investing at low valuations. Even if a startup has enough cash to get by for a while, existing investors may find neither waiting nor low valuations acceptable. If so, they could pull the plug and try to get some of their money back.
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Monday, January 5, 2009
8 VoIP Trends to Watch in 2009
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