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Could Per-Byte Billing Kill Third Party VoIP Services?

I must have been in some sort of work induced coma when I first saw the DSL Reports story on how Time Warner was experimenting with per-byte billing as I read it and responded with, “Meh, whatever.”

Again, not sure what I was thinking at first, but as I thought about it this evening, boy does this trial have major implications for third party VoIP providers.  The main reason that folks make the switch to VoIP is to save on long distance charges because they talk on the phone to much. If ISP’s like Time Warner started to charge per byte, it has the ability to totally change the consumer cost savings dynamic and make third party VoIP providers (like Vonage) obsolete, because they are no longer a low cost solution.

While trials like these have been tried before, no ISP has ever rolled it out on a large scale. Nonetheless, this yet another thing that third party VoIP providers need to worry about. As if they didn’t already have enough.

Garrett Smith

Garrett Smith is a Technology Marketing and Sales Professional

This Post Has 2 Comments

  1. Steve Milne

    I read Time-Warner said this would only affect the 5% that are using 50% of the bandwidth, so it would probably have little affect on VOIP providers.


  2. Garrett Smith

    @ Steve:

    That’s for now. If this sort of practice becomes more pervasive it could then have a very big affect on third party VoIP providers.

    I do not trust the telco’s and cable co’s. If I were a VoIP provider, I would be following this one very closely.

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