With the recent increase in the popularity of consumer broadband, other technologies that depend on high bandwidth connections like VoIP have emerged catering specifically for the individual consumer. There are many advantages to VoIP that may convince consumers to switch.
Current VoIP service providers offer all-inclusive calling plans that provide consumers with unlimited local, regional and long distance flat rates at costs that are significantly cheaper than PSTN services. Additionally, VoIP services include features such as name and number caller ID, call forwarding, call blocking, and voice mail as standard features. Traditional phone companies typically charge premiums for these features.
Currently though, there are a number of drawbacks to personal VoIP. Firstly is the necessity of having a reliable connection, namely broadband. Though broadband is becoming increasingly popular among consumers, there are still areas in which broadband is not readily available. By extension, VoIP is not readily available to consumers without broadband. Grubesic T. (2003, 263) cites evidence suggesting that rural areas are currently lagging “far behind� urban areas in broadband availability. In developing countries, the situation is much more dire.
Despite this, author Jaiswal, M (2004, 95) states that VoIP will be more effective for consumers in developing countries, such as India, because the existing analog telecommunication system is not as developed or advanced than that of more developed countries. Thus, the likelihood of consumers in developing countries to embrace new cost-saving technology is a great deal higher. He states that “the technology of voice over Internet protocol would be a key enabler for growth and service delivery�.
Perhaps with the development of further products, such as intelligent internet handsets that combine Wi-Fi internet phone and cellular access, consumers may embrace the technology. Vendors such as Belkin, Pulver Innovations, and Zyxel are pushing hard to market these devices, which look a lot like typical cordless house phones. A WiFi Internet phone, however, can sense Wi-Fi access points and link automatically to the Internet. However, these technological advancements may not be enough to persuade the public to switch from PSTN to the more advanced VoIP.
Desmond, M. (2004, 20) asks the question, “When was the last time you had to reboot your phone?� The challenge for VoIP in dealing with consumers is that, unlike businesses, which rely on telephone for communication on a mass scale (and thus expend a great deal of money), households tend not to have such expenses and as such, may not see the necessity in making the effort to switch to VoIP, and the hassle of purchasing additional technology, and upgrading to broadband, when they already have a reliable phone connection.
Next generation VoIP technologies are starting to appear on the horizon, with the development of VoIP that utilizes wireless connections. Consumers tend to shy away from new technologies in the fear that these technologies will fail, leaving them with useless products.
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Siang Lu 19:33, 27 Oct 2004 (EST)
