For years, telecom insiders have derided flat rate billing as "fad" that was not practical and going away. As recently as 4 years ago, I moderated a panel at the VON conference with leading industry analysts who unanimously said that that flat rate billing for voice would never take hold.
We all know that in the US, flat rate calling for both local and so-called long distance calling is now the norm. And in the last year, some of the independent residential VoIP players made International calling part of their flat rate packages (e.g., Lingo, BroadVoice, and more recently Vonage).
Skype took this to a whole new level last week by introducing a package of flat rate, unlimited international calling for $9.95. Now granted this is only to 1/3rd of the world's population (most of the developed world) and mostly to fixed lines (calls to mobile phones in most of Europe and Asia cost extra).
But let there be no doubt that this is just a matter of time before all calls of any distance are included as part of a flat rate plan. The marginal cost of completing a call to China cost little to no more than to one to Chicago. Watch for these international calling plans to be expanded over the next few years to the point where today's young generation will drop the term "expensive international call" just like today's adults no longer think about the cost of "long distance".
We all know that in the US, flat rate calling for both local and so-called long distance calling is now the norm. And in the last year, some of the independent residential VoIP players made International calling part of their flat rate packages (e.g., Lingo, BroadVoice, and more recently Vonage).
Skype took this to a whole new level last week by introducing a package of flat rate, unlimited international calling for $9.95. Now granted this is only to 1/3rd of the world's population (most of the developed world) and mostly to fixed lines (calls to mobile phones in most of Europe and Asia cost extra).
But let there be no doubt that this is just a matter of time before all calls of any distance are included as part of a flat rate plan. The marginal cost of completing a call to China cost little to no more than to one to Chicago. Watch for these international calling plans to be expanded over the next few years to the point where today's young generation will drop the term "expensive international call" just like today's adults no longer think about the cost of "long distance".
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