 | no room for multiple similar products in the mainstream? i was just thinking about the VOIP companies that mainstream america has actually heard of and can relate too. i am not including cable company land line replacement. i am also talking about consumer and not business offerings.
three companies come to mind: vonage, magicjack, and skype.
these are the only companies that i believe large numbers of people would recognize the name.
but they are so very different. vonage a classic landline replacement, skype primarily a softphone(these days nearly always associated with video calling) and we all know how magicjack works.
it makes me think that when it comes to consumer VOIP if you are not first to market success with a new style offering you have little or no chance to compete.
any thoughts on this?
will these three see any strong head on competition that will grab away their market share?
if so will it be from other 'over the top' providers or will it come from the major teleco's themselves? |
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 Mangowww.toao.net join:2008-12-25 Alberta kudos:11 Reviews:
·Anveo
·Shaw
·AcroVoice
·Callcentric
·callwithus
·voip.ms
·FreePhoneLine
·TELUS
| I think you could safely add Ooma to your list, in the USA, and Primus and Comwave in Canada.
Vonage, MagicJack, and Ooma have at least one thing in common: They spend huge amounts of money on advertising. This means that anyone who watches TV or reads a newspaper probably knows of at least one, and likely all three. Knowing that, one question to ask is what that means to you and me, the end users. Someone has to pay for all the advertising. I'd rather use a VoIP provider that doesn't spend as much money on PR. Vonage doesn't care if I leave them because they'll have tons of other new customers to replace me. The VoIP providers I use have to provide actual good service to motivate me to remain a customer. Having said that, both business models can be argued to be equally valid.
I've never seen an ad for Skype, (not to say they don't exist, just that I haven't seen one) but I believe being first to bring free video calling to the general public certainly didn't hurt them.
I think if Callcentric or VoIP.ms or AcroVoice (examples) spent as much money as Vonage does on advertising, pretty soon they too would be a household name. But I think these companies, and others like them, already consider themselves very successful, even though they're not as widely known as the Vonages of the industry. |
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 TrevIP Telephony AddictPremium join:2009-06-29 Victoria, BC kudos:4 | said by Mango:I've never seen an ad for Skype, (not to say they don't exist, just that I haven't seen one) but I believe being first to bring free video calling to the general public certainly didn't hurt them. Marketing win for Skype. Everyone forgot about the originals like Microsoft's NetMeeting and CU See Me, both of which enabled easy video calling for anyone who had a webcam and Internet (even dialup!) access. -- Wondering what I do? Find out at »www.digitalcon.ca |
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 Mangowww.toao.net join:2008-12-25 Alberta kudos:11 | I never used CU See Me, but didn't NetMeeting require you to know the user's IP address and set up port forwarding? I was thinking Skype may have been the first to make the technology available to those without any real technical knowledge. |
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 TrevIP Telephony AddictPremium join:2009-06-29 Victoria, BC kudos:4 | said by Mango:I never used CU See Me, but didn't NetMeeting require you to know the user's IP address and set up port forwarding? I was thinking Skype may have been the first to make the technology available to those without any real technical knowledge. I recall NetMeeting having a directory service where you could find someone by searching for a screen name and location, or something similar. I never used it since the days of broadband routers, so port forwarding was a non-issue. I'm pretty sure Windows 95 was about the era when I thought video calling was the coolest thing ever, and I had completely lost interest and found it pointless by the time Windows 98 came out 
At any rate, perhaps Skype revived it the technology and reintroduced it at a time when webcams came standard with laptops and cell phones, but it was certainly marketing (even if not mainstream media, but more targeted efforts) on Skype's part that made them the success they are today. -- Wondering what I do? Find out at »www.digitalcon.ca |
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 nitzanPremium,VIP join:2008-02-27 kudos:2 | reply to Mango said by Mango:I think you could safely add Ooma to your list, in the USA, and Primus and Comwave in Canada. I don't think Ooma qualifies. It only has around 100k customers, and most non-technical people you ask will have no idea who they are (unlike Skype/Vonage/MJ).
Other than that- you're absolutely right. The reason Vonage and MJ are widely known is simple: TV advertising. Whether it makes financial sense to spend $400 on acquiring a new customer (like Vonage does) is another question... |
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 | reply to tom thomas i know some people would find this hard to believe but i have not owned or watched more than a minute here and there or TV in the last 20 years. so TV advertising is not something in am 'in the know' about.
if it is the advertising though i still find it interesting that this many years into the launch of VOIP the mainstream products are still so different with their own niche.
compared to another product also advertised on TV, soap has so many similar brands all side by at the supermarket. the competition is on cleaning strength and price.
one of the reasons i bring this up is that the way the VOIP market sits now there is no real head on competition between household names. skype is for video calls, vonage to replace the landline, MJ is for the extra line plugged into the laptop.
if we had four or five companies all offering(and advertising including perhaps on TV) near identical services but competing on audio quality, customer support and price than i believe we would actually have much higher consumer adoption.
the smaller players do compete as a state above but they are pretty much out of the mainstream. i never in real life hear people mention the companies we talk about regularly here on this forum. |
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 PX EliezerPremium join:2008-08-09 Hutt River kudos:13 Reviews:
·callwithus
·voip.ms
·Optimum Voice
·Vitelity VOIP
·Gizmo5
| [I made a really long post last night then I accidentally deleted it before posting. Aargh!!]
Summary:
To manufacture automobiles, you HAVE to be a pretty big company. As far back as the 1940's Preston Tucker found this out. He was a good man who was persecuted, unfairly prosecuted, and who died at age 53 essentially of a broken heart. (BTW those few Tucker cars that were made are worth a fortune today!)
To make soap, you pretty much HAVE to be a big company, simply in order to get the all-important shelf space in the supermarket, or to get past the vetting process that WalMart imposes on vendors.
And so forth.
But with VoIP----
You could be a huge company like Vonage. So large that the security deposit they had to give the landlord for their HQ building is [seven million dollars]! What a waste. Why does a VoIP company need a huge green lawn?
OR you could be a more mid-size provider like Packet8 (8x8).
OR you could be a smaller provider.
OR you could even be an ultra-small company with fewer than 7 employees, as I think is true for F9 and CWU and perhaps Anveo.
And each type of company has a niche, each type can be profitable.
And in fact, it is the smaller ones who do the most innovations.
In VoIP, one does not have to be huge to be successful.
In this instance, the (alien invaders) would gladly respect the rights of the sole survivor of this world. It was at this point that the man interrupted. "But what is the purpose of this endless expansion?" He seemed genuinely curious. "What will happen when you finally occupy every planet in this galaxy?" AE van Vogt's "The Monster" aka "Resurrection" |
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 | PX,
when it comes to automobiles Chrysler, ford and GM all make 4 door family sedans. that would be vonage. they also all make pickup trunks(skype) and compact two doors(magicjack).
with mainstream VOIP there is no direct head on competition it seems.
except of course with the small lesser known companies. |
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 gogreen join:2010-09-10 Virginia Beach, VA | reply to tom thomas How about netTALK? They are in most retail stores in US and Canada now. |
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 | said by gogreen:How about netTALK? They are in most retail stores in US and Canada now. i have read that they are in retail stores. but i have never met anyone who mentioned them and have never actually seen them in any store. but perhaps nettalk will end up side by side with MJ+.
so far though they are far from a household name. |
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 PX EliezerPremium join:2008-08-09 Hutt River kudos:13 Reviews:
·callwithus
·voip.ms
·Optimum Voice
·Vitelity VOIP
·Gizmo5
| reply to tom thomas said by tom thomas:with mainstream VOIP there is no direct head on competition it seems But the cable company phone services (Comcast, Cox, TW, Cablevision/Optimum) have millions of lines and do compete with POTS on the one hand and Verizon FiOS and AT&T U-Verse on the other. And their main independent competitor is Vonage, but yes, MagicJack and Skype have large presences there.
There are many companies that cater to business communications, such as special programs from the cable companies (eg Optimum Lightpath) as well as providers such as Paetec, Vocalocity/Aptela, Packet8, etc. Skype as well---especially for overseas calls.
If you are saying that Vonage is the big independent VoIP and that no one else matches their size, that's true. I think that reasons for that include:
a) Vonage was an early entrant, and grew rapidly at first when they didn't have as much competition even from cable outfits.
b) Residential VoIP is not nearly as profitable per line as Business VoIP.
c) Vonage has always had a somewhat difficult time in the stock market. Investors are skittish about the residential VoIP sector.
d) Another thing that makes Residential so challenging (more so than Business) is the massive defection to cellphones especially among the young.
One reason that I do hope that Vonage stays around is that the big cable outfits NEED competition. That's the same reason that I am a supporter of good quality VoIP providers of any size. |
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 usa2kBlessedPremium,MVM join:2003-01-26 Redford, MI kudos:3 Reviews:
·WOW Internet and..
·VOIPo
| said by PX Eliezer:said by tom thomas:with mainstream VOIP there is no direct head on competition it seems But the cable company phone services (Comcast, Cox, TW, Cablevision/Optimum) have millions of lines and do compete with POTS on the one hand and Verizon FiOS and AT&T U-Verse on the other. And their main independent competitor is Vonage, but yes, MagicJack and Skype have large presences there. I was just thinking that cable companies are as big or bigger, yet their image as a phone service is overlooked here because they don't have a phone specific brand recognition.
People like me, are inclined to lump them with AT&T and the other evil giants that have no personal connection to the "regular guy"  --
Jim, VoIP 12/2002, VOIPo 2/2007 FAH-Tool~Pets~Join Artist-247 |
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