28 December 2006

The beginning of the end for VoIP?

This item in BusinessWeek is very interesting ...

Traditional telcos' services can, in fact, prove to be cheaper when calling countries like Israel, he says. My personal experience shows that using prepaid calling cards is still cheaper when dialing Russia, meanwhile.

If VoIP is truly the cheapest switching technology (as I argued in my 1999 TPRC paper), why does this observation obtain? Is this more an issue about business models than cost of technology?

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