Another Residential VOIP Provider Closing

[VOIPoTim]

Here is my view...

Look at their (AT&T and Verizon) situation in comparison to the cable companies. That's who they consider to be their biggest competition.

Now look at the pricepoints. The cable companies saw huge growth with average pricing being $40+/mo and without the hassle of ATAs, etc.

AT&T and Verizon on the other hand had VoIP services competition with their other offerings at a low pricepoint and didn't see much growth in them.

If they compare their situation to the one with the cable companies, I can't say I blame them.

Back when they had launched these services, the cable co stuff wasn't really in the picture then and these were more of a reaction to Vonage. I don't think they even want to compete in the Vonage/independent market since it's primarily driven by price.

Today with the fiber services and the fact that DSL coverage is very very high, why not drop the low-priced independent service and push a new service bundling hard and in a more integrated way?

Obviously the higher price point is not an issue for the cable companies, so they likely have some confidence in it not being so for them either if they execute it well.

That's how I'd look at it.