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Voip - A Layman's Look - Should You Or Shouldn't You?
By Dennis Schooley, BBA, CA, Wed Dec 7th
/p> So what's all this VoIP hype anyway? I mean we all know that ourvoice can be delivered to the four corners of the globe overtelephone lines. (Actually, I missed that part of second grademath where they taught us that a ball has corners, but everybodysays it, so I'll accept it). Alex G. Bell, the second mostfamous resident of Brantford, Ontario, right after Wayne Gretzkyof course, led us down the voice transmission path. We're also fully aware of the Internet. Otherwise where would weget our sports scores, weather reports, horoscopes, andgenealogy fixes. So why do we care about the real-timetransmission of our voice, in telephone quality, using Internetprotocol (VoIP)? Presumably the whole concept was created to deliver some benefitto us techno-ignorant dwellers of the house of the masses. Asbusiness people we manufacture shin pads, or we distribute catfood, or we evangelize, but should we be considering VoIP? Willit make us money, or save us time? Will it make us moreefficient as a Manufacturer, Distributor, or Evangelist? If theanswer to those questions is no, then we shouldn't even thinkabout it. So let's explore those questions. After all, it's allabout results.
Geoffrey Moore introduced the concept that a product must crossthe chasm of market acceptance in the 'Technology Adoption LifeCycle' in his book Crossing the Chasm. In his next book, Insidethe Tornado, Moore talks about the tornado of market acceptancethat lies like a siren beyond the chasm. It appears that VoIP isclawing up the far wall of the chasm, but we don't know for surewhether it will find that toe hold to crawl out, and catch theswirling tornado winds of fortune. All indicators are that it'sgoing to happen. Dorothy and the Tin Man are holding theirbreath. Perhaps the most significant indicator is that the'business-prevention specialists', a title I usually reserve forlawyers, but in this case is applied affectionately to theFederal Communications Commission (FCC) and the CanadianRadio-television and Telecommunications Commission (CRTC), havebegun the task of investigating what should be regulated in theworld of VoIP. The FCC has already delivered a ruling on a VoIPproduct offered by AT&T. That fact in itself should make us alltake notice that there must be something good coming, or theywouldn't be showing up at the dance to make sure the band isn'ttoo loud. Larry Stocker, of Schooley Mitchell Telecom Consultants inKansas City says, "if my clients' interest in VoIP is anyindicator, then I think there will be a big increase in theprovision of the service. We have quadrupled our number ofassignments in the last six months alone, for clients that wishto select the right VoIP service, at the right price, from theright supplier. That seems to be a good indicator of marketacceptance." Another good indicator would be the number of suppliers,including the tier-one Telco's that have entered the fray toprovide VoIP in their own particular flavor. That fact shouldcause us pause. It should cause us to challenge the originalpremise that 'talking over the Internet will be free', and thatthere will be no long distance cost any more. If that were thecase, would all of these big companies - the renowned leaders inthe telecom world - be scrambling to get to market to providethe service? Maybe it's just their way of giving back tosociety. I'm more inclined to think there are huge profits atstake. And now you say, 'but I've already got the Internet, why isn'tit free'. Well first of all, you'll need some kind of devicethat delivers 'telephone quality' over the Internet. Remember, Isaid 'real time'. Those $20 microphones just don't do it. Inaddition, have you ever tried to put someone on hold on
theInternet, or call forward, or take a voice message - you know,the things that businesses do everyday. Presumably that's what all these suppliers are running the relayfor - to sell you that 'stuff' at the end of the race. Whetherthey sell it to you outright, or whether you rent it from themfor a monthly service fee isn't the point. The point is thatthere is a cost to get access, as well as proper businessapplications. Included in the cost, which will be recoveredthrough charges to you, are signaling, routing, protocol, andinterface technologies. Oops, that's not layman's talk. In addition to the access 'stuff' as a layman would say, therehas to be access to the Public Switched Telephone Network(PSTN), or I would never be able to call my mother. VoIP callshave to terminate on everyday telephone sets because I'm prettysure my mom doesn't have a VoIP set up at her house. She doesn'thave a bankcard, won't stay in a hotel that doesn't have 'realkeys', and still loves her dial phone (definitely in Moore'stechnology buying group called Skeptics or Laggards). There isno way I'll be talking to her over her Internet connection - shedoesn't have one, and never will. So this VoIP thing will haveto access the normal phone system. That's where the FCC and CRTCstep in. Their position is that if the PSTN will be accessed,then access fees will have to be paid by the providers. And upgoes the cost. In his book, Implementing Voice Over IP, Bhumip Khasnabish, says"The goals of VoIP implementation are to achieve (a) significantsavings in network maintenance and operations costs and (b)rapid rollout of new services." O.K., so it's not free but there should be 'significant savings'if that holds true. Assuming those savings will be passed on, itshould make me more money through cost reduction. Presumablythese 'new services' will be designed to save me time, make memore efficient, or provide easier access to my target markets.Just think if one step can be eliminated in the manufacture ofshin pads, if distribution channels for cat food are morestreamlined, or the Evangelist can find more heathens toconvert. Bill Webster, another Schooley Mitchell consultant in Calgary,Alberta says, "the key is to assess the reliability and qualityof service. If the quality is what you need, and by the way,it's improving every day, then a cost-benefit analysis isrequired comparing your current access to VoIP. Often times VoIPis the winner. As new services with VoIP become available overtime, that win will be even more evident for the regularbusiness person." So there you have it. Should you or shouldn't you, as the titlequeries? It seems that the answer is akin to; should I orshouldn't I, when Alexander Graham introduced the telephoneconcept in the first place. I'm pretty sure that everyone, atleast those that are alive today, eventually got one. Bell hadto deal with laggards too. It seems that this is the way the market will develop if thesupply and regulatory indicators hold true. VoIP is not out ofthe chasm yet, but when this many suppliers enter the arena,then functionality is driven up to deliver the 'better mousetrap', price is driven down through competitive alternatives,reliability (the bugs are worked out) is driven up by the sameforces, and you have emergence. It seems that if you take Webster's advice and prepare theproper cost-benefit analysis, you're likely going to be gettingyour kite ready for the VoIP tornado.
About the author:Dennis Schooley is the Founder of Schooley Mitchell TelecomConsultants, a Professional Services Franchise Company. Hewrites for publication, as well as forschooleymitchell.blogging.com and franchises.blogging.com, inthe subject areas of Franchising, and Technology for the Layman.http://www.schooleymitchell.com, 888-311-6477,dschooley@schooleymitchell.com.
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