Guest Commentary: Rob Wolpov

Guest Commentary: Rob Wolpov

FierceVoIP welcomes this no-free-lunch perspective from Rob Wolpov, president of hosted PBX VoIP provider Junction Networks in New York. Junction charges a flat fee for a certain number of users rather than the typical per-seat pricing structure for unlimited minutes. FierceVoIP does not endorse the service of Junction Networks nor any other specific service provider. The opinions expressed here are the author's alone. FierceVoIP welcomes reader comments.

Is the premise of free Internet calling the reality of VoIP?

With the recent closure of SunRocket and a new breed of VoIP providers entering the market offering low cost internet calling, a closer look at the industry is in order.

Are we really getting a deal? Business customers and consumers alike need to look beyond the "great deal" being offered and consider what they are really getting. You may be getting ridiculously cheap calls but you are paying for it in other ways and eventually it will affect the quality of service.

For the most part, providers are riding a wave of hope that one day the traditional telephone network will be replaced by cheap Internet calling. Many providers are pushing the envelope, trying to drive down prices by avoiding the PSTN and focusing solely on the Internet. Many hold this vision of the future, but it may be a bit premature.

NO FREE RIDES

Calls to and from phone numbers cost money, there is no way around it. Providers offer the low-cost or free calls, and gladly bare the brunt in the hopes of up-selling you on more expensive services you will surely need, eventually canceling the free portion of the service and forcing you to pay. Even when calls avoid the PSTN and take place exclusively over the Internet, there is still a cost. Internet access, hardware, software and employees all cost money. Someone's got to pay eventually--the customer.

Unfortunately, reality will bite these services, which ultimately are likely to face reliability challenges as costs rise and revenue doesn't. Bottom line--cost cutting will eventually lead to poor service. Users will be hung out to dry. Take SunRocket for example; they overestimated the market and ended up closing their doors, leaving their customers stranded.

For a business customer, "FREE" should mean "too good to be true." Unlimited usage is well and good, but it certainly can't last forever. What businesses need is reliable service at a fair price; no hidden agenda and no up-selling. If you are making unlimited calls, you are making up for this somewhere else by paying more for add-on services or higher per-seat charges.

COST STRUCTURES

Seat charges are a way to limit small business customers from getting the same services as the big enterprise customers at more affordable prices. Some providers will require a minimum seat purchase in order to gain access to more advanced features like auto attendant. Why shouldn't the little guy be able to buy a smaller amount of service and still get their needs met?

Another consideration is looking at the provider to determine if they are going to stand the test of time. With the multitude of vendors to choose from, there is an opportunity to really shop around and find the best deal. Is the hardware they are offering compatible with other VoIP systems? Are you going to make a huge investment in hardware that's useless if you switch providers? Are they using SIP?

Don't be fooled by promises made for free calling, there is always a catch. Advancements in technology are certainly bringing the costs of calling down, but they will never be free. It's a business after all, and there are tons of companies out there making money selling phone service.

Rob Wolpov is president of Junction Networks, a New York-based company founded in 2004, providing next-generation SIP services to 3,000 small business customers. Wolpov was previously with IBM Business Consulting Services, and started his career as a software engineer. He holds his M.B.A from Columbia University and received a B.S . from the Wharton School of Business at the University of Pennsylvania .