11 November 2006

85 VoIP service providers
shutdown in 15 months.

Many
wannabe Internet and technology entrepreneurs think this new phenomenon
called VoIP is a guarantee to make money - well think again -
at least 85 VoIP services have shutdown in the past 15 months.

The VoIP industry has been growing exponentially since
2003 and especially 2006 saw significant growth with new
services launching around the world on a weekly basis. Fuelled by the
succes of Skype in Europe and Vonage in the USA many startups have
decided to jump on the VoIP bandwagon and try their luck.

Without a significant differentiator or very deep pockets for marketing
to create an online and offline presence it will be very difficult to
survive in this extremely competitive market with call termination
costs dropping rapidly and sqeezing margins.

So what you may ask?