Horsecrap. All I am selling is the phone system.
Matt Larsen

Matt Liotta wrote:
Anyone who thinks that providing a POTS line along with VoIP service for 911 compliance either has read the order and/or has checked with council. If you provide any VoIP service your VOIP must be 911 compliant as per the order. Any other services you may or others may provide to the customer are not considered when testing your specific service for compliance.


On Jun 19, 2006, at 6:27 PM, Matt Larsen - Lists wrote:

One way to cherry pick on VOIP is to specialize in the phone systems and make sure that they keep at least one POTS line. Then, even with a dead internet connection, they will still have (albeit limited) capabilitity to get out and receive phone calls, and also to handle 911. I recently sold an 11 extension, four POTS line Asterisk phone system to a small business for around $2500, phones included. There was a considerable amount of profit margin in that amount, and it beat the nearest local competitor by $3000. The customer picked up my 1meg Internet service for $49.95 a month and is paying $50/month for 3000 minutes of long distance and a toll free line. I also get at least $35 every time they need a change made to their phone service (new phones, reconfiguration, etc). Because the 911 and local dial tone is all on the POTS lines, you clevely sidestep that risk. This beats the heck out of trying to do the "outsourced PBX" service, because they have hardware onsite and flexibility to go with multiple providers for dial tone, including land line ones.

Just another way to look at the picture.

Matt Larsen

Peter R. wrote:

He did say he was selling to SMB, not Resi.
Very few small businesses are going to use Yahoo, AIM, or MS as a dial-tone replacement. Skype is free within the US now, so some will try that, but there are security concerns (growing daily) about VoIP, especially with the mandatory CALEA compliance. (,7204,19495174%5E24170%5E%5Enbv%5E24169,00.html)

Weekly, ISPs come to me to offer VoIP. After the CommPartners mess, I stopped referring clients to anyone. You just don't know what the Wizard of Oz is really doing. Doing it yourself is difficult. When you take over the dial-tone of a business, you better make sure that you have 5 Nines of reliability with redundancy built-in, because if the phones are working, they are losing customers.

And, Marlon, you are correct - most VoIP Providers are NOT making any money. 4Q05 delta3 did $9.1M in revenue and kept $25k in income. MSOs are probably making $$ on VoIP because they own the network, charge a higher rate, and have fixed modems that mitigate the 911 issue. The top 7 MSOs now have 10M VoIP users.

When you consider that many CLECs like USLEC, FDN, ITC only have 25k customers and can barely eek out a living using wireline, you have to consider that VoIP may be difficult to profit on, too.

Many will tell me that they are killing it - profitably - but these same companies have less than 1000 broadband subscribers. At a 15% take rate, that is 150 VoIP users. That is manageble and using Asterisk and a CLEC PRI in a small region could be profitable, before scale, growth, and scope start to weigh you down.



Marlon K. Schafer (509) 982-2181 wrote:

I still believe that there's no money in voip for the service provider. Not in the long term.

The money will be in the ability to offer good voip capacity but not the voip it's self.

Yeah, I know, there are people making money with voip. I heard that song and dance about hot spots too. IF you are one of the few out that with just the right model, capabilities, market etc. good for you.

For the rest of the WISP market, there's far more money to be made over the years offering transport. Especially if the trend for DSL and cable companies to mess up other people's voip continues.

Here's the real nail in the coffin of voip:;_ylt=AlRactYLuOa7.Wxwqq5epPBwMMIF

And that's just ONE provider.  More are bound to come.


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