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Jane Hoskyn

Sorry, BT - Skype's the future of phoning

By My status Jane Hoskyn on January 12, 2007 in Skype in the news.

ovum.jpg

Internet telephony is set to grow and grow in the UK for at least the next five years, according to industry-watcher Ovum. This takes us into next-generation voice – and, one would hope, a properly unbundled phone network.

"The composition of the voice market will be quite different to what we see today," says Mark Main, senior analyst at Ovum. The changing face of the phone-calls business is largely thanks to players like Skype, according to research firm the Kelsey Group.

"Skype’s service will take business away from the telcos," says Neal Polachek, senior vice president at Kelsey. "Even at a very low price, putting any price on the offering gives consumers a perception the service has greater value, and more consumers are likely to migrate over from traditional phone service."

I'm loath to namecheck the telco whose "line tags" are still scuppering my attempts to switch broadband ISPs, and who charge me a fat line rental fee even though I only use my landline about once every four months. However I think it's worth mentioning BT Retail's claim to have amassed 1 million customers for its internet telephony offering.

One million, eh? Ovum's Mark Main dug a little deeper and discovered that the claim is rather a loose one.

"BT implies that it has a million internet telephony users, whereas in reality anyone who takes a BT Retail Total Broadband package is automatically registered for internet telephony even if they don't use the service." In other words, it's rather like God Channel 2 claiming to have 8 million viewers just because 8 million people get Sky. Sheesh, as they say in Las Vegas.

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I believe that's been discredited now. Apparently signing up for a Total Broadband package doesn't automatically register you for internet telephony because it's a separate optional registration for the VoIP service. BT's figures may in fact be correct.

akelsall | Thursday, Jan 18

You are so right. I have just moved to London from Denmark and in order to get internet connection had to get a crappy BT land line in addition to its broadband. it is like hostage taking. I can't decide what to buy, because BT has the monopoly in the UK.
Can't it be actually anything done about it? It really sucks.

goossun | Thursday, Aug 16

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