Guest Commentary: Rob
Wolpov
FierceVoIP welcomes this no-free-lunch perspective
from Rob Wolpov, president of hosted PBX VoIP provider Junction Networks in New
York. Junction charges a flat fee for a certain number of users rather than the
typical per-seat pricing structure for unlimited minutes. FierceVoIP does not
endorse the service of Junction Networks nor any other specific service
provider. The opinions expressed here are the author's alone. FierceVoIP
welcomes reader comments.
Is the premise of free Internet calling the reality of
VoIP?
With the recent closure of SunRocket and a new breed of VoIP
providers entering the market offering low cost internet calling, a closer look
at the industry is in order.
Are we really getting a deal? Business
customers and consumers alike need to look beyond the "great deal" being offered
and consider what they are really getting. You may be getting ridiculously cheap
calls but you are paying for it in other ways and eventually it will affect the
quality of service.
For the most part, providers are riding a wave of hope that one day the traditional telephone network will be replaced by cheap Internet calling. Many providers are pushing the envelope, trying to drive down prices by avoiding the PSTN and focusing solely on the Internet. Many hold this vision of the future, but it may be a bit premature.
NO FREE RIDES
Calls to and from phone numbers cost money,
there is no way around it. Providers offer the low-cost or free calls, and
gladly bare the brunt in the hopes of up-selling you on more expensive services
you will surely need, eventually canceling the free portion of the service and
forcing you to pay. Even when calls avoid the PSTN and take place exclusively
over the Internet, there is still a cost. Internet access, hardware, software
and employees all cost money. Someone's got to pay eventually--the customer.
Unfortunately, reality will bite these services, which ultimately are
likely to face reliability challenges as costs rise and revenue doesn't. Bottom
line--cost cutting will eventually lead to poor service. Users will be hung out
to dry. Take SunRocket for example; they overestimated the market and ended up
closing their doors, leaving their customers stranded.
For a business
customer, "FREE" should mean "too good to be true." Unlimited usage is well and
good, but it certainly can't last forever. What businesses need is reliable
service at a fair price; no hidden agenda and no up-selling. If you are making
unlimited calls, you are making up for this somewhere else by paying more for
add-on services or higher per-seat charges.
COST
STRUCTURES
Seat charges are a way to limit small business customers
from getting the same services as the big enterprise customers at more
affordable prices. Some providers will require a minimum seat purchase in order
to gain access to more advanced features like auto attendant. Why shouldn't the
little guy be able to buy a smaller amount of service and still get their needs
met?
Another consideration is looking at the provider to determine if
they are going to stand the test of time. With the multitude of vendors to
choose from, there is an opportunity to really shop around and find the best
deal. Is the hardware they are offering compatible with other VoIP systems? Are
you going to make a huge investment in hardware that's useless if you switch
providers? Are they using SIP?
Don't be fooled by promises made for free
calling, there is always a catch. Advancements in technology are certainly
bringing the costs of calling down, but they will never be free. It's a business
after all, and there are tons of companies out there making money selling phone
service.
Rob Wolpov is president of Junction Networks, a New
York-based company founded in 2004, providing next-generation SIP services to
3,000 small business customers. Wolpov was previously with IBM Business
Consulting Services, and started his career as a software engineer. He holds his
M.B.A from Columbia University and received a B.S .
from the Wharton School of Business at the
University of Pennsylvania .