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Vonage Trek - A typical wire-line carrier has to license features for the entire central





Trek - A typical wire-line carrier has to license features for the entire central office switch. They pay a base "right to use" fee. The more people they can sell calls-waiting, caller-id, etc. to, the more the profits will be. Obviously, they need a base number of customers in a given CO to justify the expense. Beyond that, it is mostly profit.

There is tremendous expense with customer no-service, repair crews, construction crews, and all the other human resources of the traditional phone company. They're bloated and over-paid. Their labor unions continue to hold the companies hostage for higher salaries and greater benefits. In addition, they must have profits high enough to attract stock-holders and pay dividends. Finally, you have all the greedy government entities tacking on additional taxes that the phone company must then pass on to you. The Northeast is most notable for all the outrageous add-ons to support their bloated governments and "gimme" programs that the Democrats love to force on the people.

I won't get into an economics discussion, but suffice to say that if all you need to provide is switching fabric (as the Voip companies do) and let someone else deal with the transport, your savings are massive. That's how they can do it for a lot less money.

Personally, I'd gladly pay a buck or two more just to have someone answer my tech support calls in under 30 minutes.



Read The Full Thread:

How can VOIP be so much cheaper?


Hi all, This is a question for purely curiosity sake. How can be VOIP be
For starters, do you understand how much physical cable and equipment the telcos
Yes, but don't the VOIP people use the same lines? When calls are made to non-VOIP
The public has been gouged for decades by phone companies because there were no
Yeah they do, just like you "use" the same lines when you make a phone call to your
Yes, but don't the VOIP people use the same lines? When calls are made to non-VOIP
Utilities don't care what their costs are...they are typical guaranteed a return
Yeah they do, just like you "use" the same lines when you make a phone call to your
I'm thinking that once we figure in the cost of cable modem or DSL it isn't all that

kenn10 posted "Trek - A typical wire-line carrier has to license features for the entire central" on 02/23/2005

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