Verizon VoiceWing customers received letters in the last couple of days saying, "We regret to inform you that effective March 31, 2009, Verizon will no longer offer VoiceWing. At that time, all VoiceWing service will be terminated". Rumors of VoiceWing's demise have been circulating, especially with Verizon FiOS (Voice, Video/TV, data) a much more profitable long-term business than single-play VoIP. I should add that Verizon stopped marking VoiceWing last year.Verizon VoiceWing uses a locked Linksys PAP2 ATA, but the letter says they don't want the ATA back, once again fullfilling prediction #2 in my 2005 VoIP predictions.
I wrote:
It would be nice if Verizon included the PIN for the ATAs to allow customers to switch to another VoIP provider. Of course many VoIP service providers offer free ATAs with a one-year contract. Still, do we really need millions of working ATAs sent to the landfills? No very green if you ask me. I should point out that VoiceWing is actually a cooperation service with Deltathree.2) VoIP providers will continue to harp that the government shouldn't impose any regulations on VoIP and that the industry should be open & free, while simultaneously VoIP providers will continue to alienate their customers by password-protecting and locking the customer's ATA (analog telephony adaptor), thus preventing customers from easily switching to another VoIP provider and using the same ATA. This is hypocrisy at its worst! Customers will continue to be left with useless ATA "bricks" which eventually will make it the local landfill when they switch to a better VoIP provider.
Perhaps not so coincidentally to Verizon killing off VoiceWing, is this lawsuit filed on December 5, 2008 by Centre One against VoiceWing for patent infringement. Oh the sweet irony if Verizon, the ones who sued Vonage practically to death, would themselves have given up on the VoIP industry over a patent lawsuit! Still, I'm doubtful the patent litigation was the cause. I think Verizon sees bigger fish to fry in their FiOS fiber-to-the-home offering and single-play VoIP just isn't that profitable to them.
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This was a long time coming. Verizon was cannibalizing its existing POTS business. If anything, the VoIP service was a confusing offering compared to its traditional offer. Furthermore, I think new tax legislation is starting to narrow the price gaps between POTS and VoIP.
Discontinuing VoIP service is becoming a common theme amongst traditional telcos. I do foresee a time when independent VoIP Providers may start getting traction through naked DSL, barebones Cable Internet service and even Mobile VoIP offerings.
Verizon stopped adding customers last year so this was obvious. The interesting news is that DeltaThree is now being bought out by another company for pennies on the dollar. Someone is going to try to keep the customers and put them in a new corporation. It reminds me of when Sunrocket sold a bunch of their customers to Teleblend.