ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

Free SMS – the First Blow of VoIP against the Telecom Carriers

Updated on August 14, 2012
The Emergence of VoIP
The Emergence of VoIP

Cheap Voice – a Nightmare for Telcos

If there is one doomsday scenario that all telecom companies in the United States dream of, it is that their entire telephone revenues will be supplanted by VoIP. This is a legitimate concern and the drain of profits has already begun. The emergence and success of Internet-based communications is evidenced by the fact that they have already lost 9% of the revenue that they used to obtain from SMS services which were almost all profit. This erosion of SMS revenue is only the beginning. It is inconceivable that given the option of free alternatives, people are not going to continue to take greater advantage of the communications utopia that the Internet offers.

But the true threat to telecom companies is VoIP. Already, individuals in the European Union are fast making the switch to VoIP services and giving preference to them over the traditional PSTN system. The situation in the United States is somewhat less dire for telecom companies mainly due to the differences in the way that people purchase their phones and voice minutes.

Over here, individuals are locked in to two-year contracts that provide them with a certain number of voice minutes every month. Because of this, they see little incentive to move to alternative forms of communication like VoIP until and unless they see the cost-saving benefits. However, telcos make full use of human nature by dangling a subsidized handset in front of customers to tempt them into signing a contract. Even though it ultimately turns out to be more expensive in the long run, the lure of paying little to nothing for a subsidized phone can prove too strong for many.

Getting Your Foot in the Door

The key to changing the behavior of customers with regards to mobile phone purchases, lies in their making use of "gateway services" that open them up to the idea of trying something new. Once individuals warm to the notion of using the Internet for bypassing expensive services, it's only a matter of time before they look further to do the same. In addition, the newer the generation is, the more open they are to alternative ways of doing things. Given all this, it's a bleak situation for the telecom companies who sooner or later will be forced to adapt their business models to accommodate VoIP services.

Dedicated land lines are already losing their value. The time is not far away when the entire telephone business model will have to be rethought. Find a local provider for cheap phone services. For example if you stay in Los Angeles, you can easily find a Los Angeles VoIP provider who will be able to set you up in as little as 15 min.


    0 of 8192 characters used
    Post Comment

    No comments yet.


    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at:

    Show Details
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the or domains, for performance and efficiency reasons. (Privacy Policy)
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)