AOL to Introduce Internet Phone Service

dahamsta

This is a significant event that's very likely to have massive consequences right across the telecommuications industry. AOL isn't the monster it once was in the internet industry, mostly because of it's slowness to embrace broadband, but it's still a significant player. More importantly, it's userbase is the lowest common denominator of Internet users, the Fox News viewers of the Internet. If these guys can figure out VOIP, anyone can.

If competitors in that market see a significant takeup by AOL users, the move to VOIP is going to accelerate dramatically, and you're going to see a rush by providers around the world to join in. If incumbents like Eircom fail to project this growth and embrace it in some shape or form they're going to be beaten alive by their competitors, quite possibly in the forum of their choice, the courts.

Not to put too fine a point on it, this has the potential to be huge.

adam

AOL to Introduce Internet Phone Service

By David A. Vise
Washington Post Staff Writer
Thursday, April 7, 2005; Page E01

America Online Inc. today plans to offer local and long-distance phone service via the Internet in Washington and 43 other cities, the latest entry in an increasingly crowded market that includes the major cable and telecommunications companies.

AOL's new product is designed to work like regular phone service except that calls are routed over high-speed Internet connections. Setting up the service requires users to have AOL software on their computers.

Dulles-based AOL is entering a market that is still young and unfamiliar to many telephone users. One of the larger players, Vonage Holdings Corp., has just 500,000 subscribers, but competition is heating up as cable companies such as Comcast Corp. and telephone companies such as Verizon Communications Inc. develop services.

"AOL getting into this business is a very big thing," said Joseph Laszlo, a senior analyst with Jupiter Research. "They bring a very strong brand and strong reputation for ease of use to the market."

Verizon has announced plans to offer a new, 500-minute-a-month call service via the Internet in Washington for $19.95, or unlimited local and long-distance calling for $29.95. Verizon is calling its new service VoiceWing.

America Online's offering, called AOL Internet Phone Service, will cost new subscribers to America Online $29.99 per month for six months of unlimited local and long-distance calling and will include the America Online e-mail service. That price will rise to $39.99 after the trial period ends. Existing AOL subscribers will be charged an introductory rate of $24.99 a month for unlimited calling for the first three months and $29.99 afterward. Users also must pay for a high-speed Internet connection.

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Mossy Monk

in the UK they are not doing it with voip though even though it is launching in the next few weeks

dahamsta

It's an "Internet Phone Service". Are they redefining the term, or are you talking about a different product perhaps?

Mossy Monk

they are doing what Esat BT and UTV do on Eircom lines. looking like lots of PSTN ceases are on the way

dahamsta

What EsatBT and UTV do on Eircom lines is CPS (Carrier PreSelect) on a standard PSTN service, if AOL are calling that "Internet Phone Service" in the UK they should be taken to task for false advertising, or the British public should be taken to task for being morons. However I think it's more likely that you're confusing two different services.

But hey, I could be wrong. Wouldn't be the first time. Today. Allegedly.

adam

Capt'n Midnight

In the UK AOL offer ADSL so they should have control over what data they allow and unlike here you can get copper transferred (without legal threats AND a government subsidy of several thousand per line.)

I don't know what would happen here where eircom own almost every line. Could they change the T&C to other telco's using thier lines such that they would not be allowed to sell VOIP over eircom copper ?

Not knowing the technical details - does the copper from an ADSL line pass through eircom data-comms equipment or does it terminate in EAST gear ? I'm assuming that voice can just be low pass filtered out to the voice circuits either way.

Cabaal

dahamsta wrote:

It's an "Internet Phone Service". Are they redefining the term, or are you talking about a different product perhaps?

In the US & Canada its a VoIP service,
In the UK its a phone package something like Talk Talk (Carrier PreSelect)...its certainly not VoIP.

Anybody that says otherwise hasn't a clue what their talking about