Wednesday, April 4, 2007

UK VOIP faces hurdles

A day before i posted about a hope for a free voip calls in UK, and today i read a story about possible VOIP regulations which could simply put all UK VOIP operators on the backfoot.

The ofcom regulations are broadly agreed by the operators however some of the clauses will simply put the voip operators at a disadvantage. The new rules will cost UK VOIP operators money to implement, putting them at a disadvantage compared to overseas service providers that do business in the UK, said Eli Katz, chairman of the Internet Telephony Services Providers' Association (ITSPA), a trade group that includes BT and Vonage.

The regulations also include clear explanation of emergency services and itemised billing to clients.
However the main disadvantage is that the foreign operators having UK regional presence will have little impact from the regulations will be easily overshadow the local operators creating a huge gap between earnings potential and revenue. UK is the next biggest market expected to see a VOIP boom and companies are eager to tap it.

The new ofcom regulations has definitely started a debate over the earning potential of the local operators and their future in this growing market.

0 comments:

Post a Comment