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PC VoIP Services See Influx of Handsets

By Greg Scoblete -- TWICE, 1/30/2006

Sidebars:
Hurdles Remain In VoIP Adoption
Top 5 Promotional Offers That Increased Purchase Interest

Las Vegas — While Vonage and 8x8 battle for primary line replacement service, several manufacturers announced VoIP products at International CES designed to co-exist with an existing landline.

DalCom announced the DalFon retail package which bundles a USB handset and works over DalCom's SIP-based VoIP network on either a dial-up or broadband Internet connection. The handset retails for a suggested $99.99.

The company offers a mix of pay-as-you-go and monthly subscription plans including the Monthly Premium plan which offers United States, Canada and United Kingdom calling for .03 cents per minute for $19.99 per month.

Multi-Link introduced two Skype-certified VoIP products. The TeleVoIP Stick is a phone adapter which connects to both the PSTN and a PC. A built-in control switch automatically routes all emergency calls to the landline and will automatically switch to landline calling in the event of a power outage. It is shipping now for a suggested $134.99.

The TeleVoIP Phone ($34.99 suggested) is a corded handset that connects to a PC's sound card for calling over any PC-based VoIP service. The handset features a noise-canceling microphone, volume control and draws power directly from the sound card.

XACT Communication announced at International CES that it would target the VoIP phone market in conjunction with DECT product maker SunCorp.

The partnership will yield a number of DECT-based cordless handsets and videophones for use with Skype and other free, PC-based VoIP services.

The products are set to ship in April. Pricing was not announced.

The line will include up to 15 handsets and two videophones. All are capable of displaying Skype contacts on the handset and can call over landlines. Among the highlights: The Slide will offer built-in Bluetooth for cellular conversion. It features a 2-inch color display, four-handset expandability and 12 minute ITAD. It can display digital images and games.

The Domus will feature a 255 name/number directory, 30 minute ITAD, caller ID and support for five handsets. The Opal will offer a flip-phone handset with a 1.8-inch color display, five-handset expandability, 200 phone book entry memory, and the ability to display digital images.

XACT will also offer a corded and cordless videophone for landline/PC-VoIP and video functionality. Both offer a 262k pixel, 3.5-inch display with a full color VGA resolution camera. There is a choice of three display modes, a privacy shutter, 255 name/number phone book, and caller ID. The cordless videophone works on the DECT frequency.

 

Hurdles Remain In VoIP Adoption

New York — A pair of surveys of the residential VoIP market, concluded recently, paint a mixed picture of the upstart telephony technology. On the one hand, early adopters report satisfaction with the service, yet mass-market consumers are not ready to make the leap and are even wary of the lower prices.

A Level 3 Communications-sponsored consumer research survey found that while VoIP awareness had increased, less than half of respondents were familiar with VoIP. Furthermore, Level 3 noted that the current strategy of marketing on price has failed to move the business “across the chasm” to mass-market adoption. In fact, “potential buyers view heavily discounted services with skepticism.”

To spur purchasing, the company bounced 39 promotion offers off of respondents and noted that only five prompted an interest in switching (see inset). “Offers that increased purchase interest contained three common elements: first, they had a net present value of at least $100; second, they included 'switch-back' guarantees; third, they contained an element to motivate longer-term loyalty,” the report stated.

According to a survey of leading adopters from ChangeWave Research, VoIP use continues to climb with 34 percent of responders indicating they use VoIP as a primary line. Among VoIP users, Vonage remains atop the pack but its lead is eroding in the wake of an upsurge in cable and telecom VoIP adoption. Vonage was used by 31 percent of survey respondents followed by Skype with 19 percent, “cable company” at 16 percent and 8x8 with 6 percent.

Despite losing share, Vonage and Skype users are the least likely VoIP users to switch providers, the survey said. All the major services enjoyed high ratings in customer satisfaction, with 8x8 registering the most improvement over a previous survey.

Among the winning upstarts, ChangeWave noted that Verizon is positioned to gobble VoIP share in 2006 with most of the survey respondents singling out the telco as the top provider for those looking to switch VoIP services.

Top 5 Promotional Offers That Increased Purchase Interest

  1. Sign up for VoIP and get one or more communications service FREE for one year.
  2. Sign up for VoIP and receive a consumer product of high net perceived value FREE each month for a year.
  3. Sign up for VoIP and get the first six months FREE.
  4. Sign up for VoIP and get your choice of a FREE gift with a prepaid or multiyear plan.
  5. Sign up for VoIP and get a FREE phone for life after paying 12 monthly installments of $83.50.
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