Are 10% Of VoIP Service Providers Failing? Print E-mail
Written by Adam Gosling   
Tuesday, 14 November 2006
Despite exponential growth over the past two years, some start-up VoIP service providers have failed to get traction with 85 disappearing in the last 15 months.

And there are some big names in the list of services that have fallen by the wayside. The list, compiled by listing website, MyVoIPProvider points out that even AOL with big brand and plenty of cash behind it had to admit defeat closing its Total Talk service less than 12 months after launch.

Despite significant uptake and a good dose of hype, it is a tough road for would be providers, says MyVoIPProvider.

“Without a significant differentiator or very deep pockets for marketing to create an online and offline presence it will be very difficult to survive in this extremely competitive market with call termination costs dropping rapidly and squeezing margins,” explains the list compiler.

The list was built over a 15 month period from August 2005 to October 2006in order to gauge the extent of VoIP services starting up around the world and how many of these providers actually last for more than one year.

However, the list of failed service providers pales in comparison to those still in the market. Since August 2005, MyVoipProvider has listed almost 900 VoIP phone services from around the world with the bulk of these obviously still active or the website are at least.

The fallen come from all quarters of the globe and the list is probably only a subset of those that have launched and or failed, but it makes for an interesting preview in what we could potentially see in terms of shake-out and consolidation over the next 15 months.

You can see the list here. Remember to choose your provider carefully. And if you know of any we can add to the list let me know.


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