NEWS Italian ISP Tiscali has sounded a warning to incumbent landline providers as it begins to roll out voice over internet protocol services to residential customers across Europe.
The ISP is taking aim at traditional landline revenues with the much cheaper option of VoIP, which it is to offer as a value-added service to its existing DSL customers in association with convergence specialist Netcentrex.
Paulo Susnik, CTO of Tiscali, said: "Our focus is to replace the line of the incumbent."
It's a trend that already has major telcos worried - last week a BT representative confirmed to silicon.com that the company is working on VoIP in order to soften the blow to its landline revenues from competing VoIP providers. The representative told silicon.com that even established telcos "can't fight the tide forever" - an admission that the cheaper VoIP is set to become standard.
Olivier Hersent, chairman CTO and founder of Netcentrex, said: "The cost of DSL lines is constantly decreasing and I think the move to VoIP is something we are going to see much more of."
"Tiscali's is the first such case but will see a wave of similar launches from all service providers who currently offer DSL," he predicted.
Hersent warned that incumbent telcos will either have to move with the times or suffer the consequences.
"I think next year this will be huge and even the incumbent telcos need to move to VoIP."
Comments
There are 11 comments. Join the discussion
1. Mark Hudson
BT already have a VoIP service, it's called BT broadband voice and has been available for some time. You need to check your facts!
http://www.btbroadbandvoice.com/
Available to anyone with broadband.
(Ed note. We're not sure where we said BT doesn't offer VoIP - you seem to be reading something into the story which wasn't there.)
2. J.R.M.Wheel
The answer must be a resounding yes. Incumbent players are already losing market share to cheaper providers like One-Tel. How can they offer 4p /min to Australia vs BT's 49p/minute. We have recently begun at our risk strategy business working with file sharing systems like Skpe. The system, whilst in beta format offers tremendous clarity and hands free operation. It means that rather than make calls we can interoperate virtually and at nil cost other than the cost of the current ADSL connection, which ironically is via BT. VoIP is the obvious route and provided security levels can be satisfactory I can see no downsides.
3. Harry Grove
Most interesting to read about possible future changes; however, what is VoIP? (or whatever the initials were): and, in my situation(and that of any others), what will march over the hill and across the fields to my house and into my PC if not a land-line?
(Ed note, apologies Harry. VoIP stands for voice over internet protocol - basically making voice calls over the internet.)
4. steve beaton
The inference in your article, that Tiscali is the first major provider to roll out VoIP, is misleading. Please check your facts.
5. M Fryer
Wow.. has anyone ever noticed how frightened the editorial staff seem to be on this site? Some of the stories are really quite "half-baked" so it's not surprising that your readers get "confused".
6. Terry McMahon
Yes and No, I think the main question should be how long until VoIP will be a serious alternative to Landlines.
We have to consider how much it would cost business to convert to VoIP, the blue chips would have no problems, however what about the single person companies (Joe The Plumber) which rely on calls being answered on their mobiles. Also you would have to consider how many OAPs, 50s and 40s would get broadband. VoIP will happen but it will be driven from people that are use broadband and the penetration of broadband into the home.
7. Eddie Vaughan
The incumbent land line provider in Sweden, TeliaSonera, has already launched VoIP to residential customers. Amongst other things, the service includes forwarding and incoming calls ringing on several phones at the same time, including "Joe The Plumber's" cell phone. I agree with Mark Hudson, silicon should do more research before writing such a piece, which comes across as a puff for Tiscali.
By the way, I find Terry McMahon's remarks about OAPs, 50s and 40s extremely patronising.
8. Daren Payne
Actually, ed, your article does imply that BT don't yet have a VOIP offering, because you state that they are still working on one. ;-) But now we're splitting hairs...
I can confirm they do have one, and that it works satisfactorily as a second line. There is no operator to call on, and no emergency service 999. So it really, really, really is only suitable for use as a second line -- as stated in BTs literature. I can recommend it, given these provisios.
Oh yes. And the ADSL service that a majority of potential users would run the service over (ultimately, if not directly, supplied to them by BT), requires that they have an existing phone line of course. Ah.
:-)
9. anonymous
Read the story, which was a useful information insight.
Could not help but add this in reply to the reader comments posted bitching and moaning about the context or accuracy. Silicon is an invaluble tool for me to keep up to date. If you all dislike the content so much unsubscribe, simple really!!
Have you allgot nothing better to do than try and increase your ego's
10. anonymous
Tiscali aren't the first provider to offer VoIP over dsl in the UK. BT launched a service in December 2003.
11. M Fryer
Jees anon.. you're quick off the mark there..
I've tried VOIP on several occasions and it still isn't up to scratch (IMHO). It's several orders of magnitude better than it was a year or so ago though!