September 21, 2004

in VoIP

Still mulling Aswath’s comment on VoIP User (obtain your free UK local-rate telephone number (DID) which can be forwarded to any landline in a number of countries in the World, your SIP software or hardware phone) over.

How is it that the service is so inexpensive? Indeed, VoIPuser gives away virtual numbers in UK and will terminate the calls to not just any SIP or IAX2 destination, but also landlines in selective countries for, get this, free! For me this all the more remarkable, till I realized that they are taking the kickback charges they receive for terminating the call, to pay for the forwarding of the call.

Given the service offered by VoIPuser (and soon to be joined by LibréTel), one clearly observes that VoIP technology is not needed in the access to offer virtual number service. More importantly, another “revolutionary service” afforded by VoIP turns out to be an arbitrage play. What happens to the viability of the business plan of this service if the “bill and keep” regime advocated by many VoIP players is indeed instituted? Aswath Weblog

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