Are Telcos getting to a VoIP tipping point?

Is SureWest's announcement it is moving into residential VoIP the tipping point for telco's to finally seriously embrace VoIP? SureWest is an independent Californian telco with about 115,000 access lines and has been losing access business at a rate of about seven per cent. This is consistent with industry metrics, but at the same time SureWest has been aggressively building its double and triple-play broadband business. SureWest offers 50 HD channels down its fiber network and according to Gary Kim SureWest has about 100,000 broadband revenue generating subscribers or units and that business is growing at 13  percent. On current trends that probably means its broadband business will exceed its telephone business in terms of number of units some time this year.  

However, as Kim notes in an article for TMC, the actual switch-over point will be driven by revenue issues, rather than customer base. Also relevant will be at what point it will make economic sense to simply turn off the legacy system and rely on its IP network. All the network pieces for that to happen are not here yet, but the day is coming.

As the margins for voice telephony continue to collapse and as cable VoIP and the Vonages and Skypes of the world eat away at the fringe, SureWest and all the other carriers have to make a big call about migrating their base before that base disappears on them. And once the move is on by one carrier will that prompt a stampede as telco's rush to grab market share?

For more:
- SureWest launches residential VoIP Release
- When Will Telcos Deploy VoIP? Article

Related articles:
SureWest launches VoIP Article
Comcast takes aim at business Article