Will the Dial-Up Trend Affect VoIP?

Peter : On Rad's Radar?
Peter
| Peter Radizeski of RAD-INFO, Inc. talking telecom, Cloud, VoIP, CLEC, and The Channel.

Will the Dial-Up Trend Affect VoIP?

Ars technica doesn't believe the articles in CNET and AOL-Tech about people switching back to dial-up. Well, info from dial-up aggregators indicate that dial-up is on the uptick. As some angry comments mention not everyone needs broadband.

Last year we saw the plateau of broadband subscriber numbers. This year we are seeing an increase in dial-up maybe due to the economic situation we face in the US. Certainly, AOL, Earthlink and United Online are showing revenue increases in their financial statements.

If there was a 10% drop of broadband, would that affect VoIP? Unlikely. It would affect Vonage and 8x8 and other stand-alone VoIP players, but it wouldn't have any effect on the Business VoIP businesses nor on SAAS.

Also, bundling means that the consumer probably doesn't know the pricing of the high speed internet component.

Certainly this has to be a consideration for the RUS and NTIA. What if everyone who wants to live online has broadband? What if the $7B results in just a 10% increase in broadband? Will that justify the $7B? Maybe. If the 10% are all business ventures of one kind or another - eBay, Amazon, affiliates, SOHO, freelancers, tele-workers. 

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