Forum Archive Index - December 2003

["Gary Wilson" <fastmail@bigpond.net.au>]

NZ Telco's are whistling in the dark if they say according to news item on
Sharechat that Internet Voice Calling software like Skype www.skype.com is
no threat.  These guys and others can find lots of reasons why Skype &
similar are "deficient".  This rather misses the point - if the
functionality is half as good as the voice service provided by Telco's - the
rub is the cost is many times cheaper - a compelling offer for many
consumers.  In fact Skype & others are offering a basic PC to PC Voice
service at no cost - so for those already with a PC with Broadband
connection this technology is a compelling way to reduce phone bills!  It
surely cannot be a "random exercise" that Telstra Clear is pushing Internet
Calling (Branded Private Voice) in the NZ market where it has low risks of
cannibalisation.
 
Voice over the Internet has always been a threat to established Telco's.  It
has the potential to do two things;
 
*Take away high value customers before the technology becomes
mainstream/dominant maybe by 2015.
 
*Force prices down for "current" phone services. 

All in all - not a time to be overweight in Telco stock unless you are VERY
satisfied your Telco has a strong strategy to embrace new technologies - and
sooner rather than later!
 



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