Award Winning Blog

Friday, February 19, 2010

Wireless VoIP: Loss Leader or Upselling Strategy?

Verizon Wireless’ decision to allow their subscribers to access Skype (see raises a question about strategy. Is Verizon leveraging Skype access as an inducement for subscribers to upgrade to smartphones and commit to $30 a month data plans, has the company acknowledged that its future marketplace success lies in data and not voice services, and how will the company prevent a substantial reduction in plain old voice subscriptions priced above the $30 data plan benchmark?

Like many, I have bought the view that voice communications has become a software application that rides on top of any wireline or wireless link. As such, the downward trend line for telephony approaches zero, right? Yes, if subscribers abandon their voice minutes of use plans that start at about $45 for 450 minutes a month. But no if subscribers keep the voice plan and add the $30 or higher data plan.

There was a time when wireless carriers mandated the bundling of a voice plan for the privilege of adding a data plan. Absent such compulsory bundling, Verizon must have confidence that consumers will opt to keep the user friendly voice option. This assumption makes sense particularly if wireless carriers expect to replace unmetered, “all you can eat” data plans with several tiers of monthly throughput baskets.

Cable television operators did not have such confidence that their subscribers would add service tiers rather than cherry pick. By law cable operators must provide subscribers with some “buy through” opportunities.

With a future data dominant, but tiered service environment, users may consider it prudent to keep their voice minutes on a voice plan to conserve their available megabytes for nonvoice services. Under this scenario, efficient pricing plans trump visions of convergence and zero cost voice.


Anonymous said...

I'm new around here, seems like a cool place though. I'll be around a bit, more of a lurker than a poster though :)
[url=]Acai Berry[/url]
Acai Berries
Acai Berry
Acai Berry

Anonymous said...

Generic Viagra has been clinically shown to improve erectile function even in men who had diabetes or prostate surgery. The pill contains this component that helps increase blood flow to the penis and may help men with ED get and keep an erection satisfactory for sexual activity.Generic Viagra is in a class of medications known as PDE-5 inhibitors, which are used to treat cases of male impotence. Generic Propecia is a steroid reductase inhibitor, works by reducing the amount of the hormone dihydrotestosterone in the body. This may block certain types of hair loss in men. Viagra is the best choice medicine for erectile dysfunction as it can be taken regardless of the age of the patient and works unhindered with most medicines. Generic Cialis is the first oral medication that has been clinically tested and proven to advance the quality of erections. Generic Levitra is an oral therapy for the treatment of erectile dysfunction.