Will VoIP be a Mass Market Product?

A common thinking among "Marketing people " is that for every product that enters the market there must be a path, a target, a need ( real or created) that decides how the product must enter the consumer's life, which part of the population is more likely to go for it, which niche it is going to fill and, most important "...certain things being stated, something other than what is stated follows of necessity from their being so." and that is the final issue: the price.

Depending on those anavoidable patterns a product is more or less ready for a certain market.

High technologically devices, the ones that offer perfect quality and cost a fortune will target the elitarian market, where the price has not big importance (on the contrary, if the price would be lower than what certain people can afford, the product wouldn't reach them) since it means luxury.

When a product ceases to be luxury and begins to be a need, then the mass market is ready. The product can enter 60% of consumers' lives, reach easily a good upgrade in the percentage and become " The New Product of the year 200....".

Let's consider the VoIP market.

Prior to recent theoretical work on social needs, the usual purpose of a product invoked individual (social) behaviors. We now know that these assumptions are not completely wrong.

Wrong would be NON considering them.

In systems where many people are free to choose between many options, a small subset of the whole offer will get a disproportionate amount of traffic (or attention, or income), even if no one of the system actively work towards such an outcome. This has nothing to do with moral weakness, selling out, or any other psychological explanation. The very act of choosing, spread widely enough and freely enough, creates a power law distribution.

Now, thanks to a series of breakthroughs in network theory by researchers we know that power law distributions tend to arise in social systems where many people express their preferences among many options. We also know that as the number of options rise, the curve becomes more extreme. This is a counter-intuitive finding - most of us would expect a rising number of choices to flatten the curve, but in fact, increasing the size of the system increases the gap between the #1 spot and the median spot.

In other words: give to the people the choice among desktop phones and mobile phones and the majority will choose what they think more convenient, in spite of the cost of the service.

In a way the cost of the service is the only left advantage in favour of the fixed telephony.

If the price was the same the desktop phones would disappear from the life of the average consumer (mass market consumer).

To see how freedom of choice could create such unequal distributions, consider a hypothetical population of a thousand people, each picking their favorite way of telecommunication. One way to model such a system is simply to assume that each person has an equal chance of liking each kind of telephony. This distribution would be basically flat - most kind of telephony will have the same number of people listing it as a favorite. A few will be more popular than average and a few less, of course, but that will be statistical noise. The bulk of the telephony will be of average popularity, and the highs and lows will not be too far different from this average. In this model, neither the quality of the voice, the availability, the design of the device nor other people's choices have any effect; there are no shared tastes, no preferred genres, no effects from marketing or recommendations from friends.

This is the mass market of VoIP as dreamed and forecasted by most hardware producers.

People would choose VoIP in spite of the fact that the systems are not intercommunicating, the available phones are just desktop phones, most of the population doesn't have a "Flat rate DSL" and some do not even have a decent connection, (just one " UP to...) and just because VoIP means cutting cost.

They have a few wrong assumptions:

  • Most of the people want to save calling internationally

  • Most of the people will use a cheap Flat rate connection

  • Most of the people know how to handle a computer or a network, and so solve all the eventual problems that could arise.

    But they do not consider that:

  • Most people call locally and just a few once in a while internationally.

  • Most of the people do not have a cheap flat rate Internet

  • Most of the people are not IT experts.

    Besides people's choices do affect one another. If we assume that any kind of telephony chosen by one user is more likely, by even a fractional amount, to be chosen by another user, the system changes dramatically.

    If Robert (our average mass market consumer) likes to have a phone in his pocket, available mostly anywhere, it is very likely that Mary would like the same.

    Is VoIp ready for the "Mass Market"?

    The answer could be No and Yes.

    What would VoIP offer more than the existing several choices?

  • Price. Telephone calls would be completely free of charge among two IP phones ( and that believe me is a GREEEEAT THING when you try it)

  • The never enough considered satisfaction to be able to ref..ck who f..cked us for many years...

    What would VoIP telephony need to be #1 spot in the curve?

  • A reliable PORTABLE Phone that doesn't need millions of Hot Spot's to work.

  • A reliable, cheap flat rate internet connection anywhere for everybody.

    If ONE could put these patterns together, THEN VoIP would really have the chance to be #1.

    See my website: http://www.worldonip.com or contact me patrizia@worldonip.com

    About The Author

    Patrizia is an ebooks publisher. See also http://www.easymediabroadcast.com

    patrizia@worldonip.com

    In The News:


  • pen paper and inkwell


    cat break through


    Voip Providers Review--- Choose The Best One For Your Business

    Making phone calls applying a broadband Internet connection,known as VoIP... Read More

    Finally Voip Worth a Look!

    Everyone can Benefit from this Technology! Voip will be next... Read More

    VoIP is Less Taxing than Traditional Telephone Service

    When it comes to VoIP Broadband Telephone service, there are... Read More

    How VoIP Works -- Busting Out of Long Distance Rates

    VoIP is the newest advancement in audio communications technology, and... Read More

    Why Over 90% of VoIP Services Are Vulnerable to Attack

    John Ashcroft, Attorney General, in remarks at the High Technology... Read More

    Telecom Industry Transition: WiFi, VoIP, WiMax - The Wireless Age is Already Here

    VoIP on WiMax will make the latest 3G technologies obsolete... Read More

    Voice over IP (VoIP) Features

    Because with VOIP you can make calls from anywhere you... Read More

    VOIP For Your Business

    Many companies are now beginning to look into alternatives to... Read More

    What Is VoIP and How Does It Work

    IntroductionThe way we make phone calls is changing. In fact... Read More

    How to Choose VoIP Service Without Losing Your Shirt

    Voip.Just mentioning the word to yourself either brings up images... Read More

    6 Important Things You Should Consider When You Are Selecting A VoIP Provider

    The following are 6 very important factors to consider when... Read More

    What?s Your IQ on Basic PC Phone (VoIP) Knowledge

    Short T/F quiz1. T / F You can save a... Read More

    Is VoIP Good For The Home?

    There is no doubt that you have heard about VoIP... Read More

    How Much Bandwidth is Required for VoIP Phones?

    A long-standing question for potential VoIP (Voice over Internet Protocol)... Read More

    What Do You Know About VoIP?

    What is VoIPVoIP is an acronym for voice over internet... Read More

    Bluetooth Computer Headsets - Enjoy Wireless Freedom

    Wireless Computer HeadsetsTill recently, few options were available to people... Read More

    VoIP and 911 Warning

    Be leery of your VoIP phone system in case of... Read More

    VoIP: Finally Worth a Look

    Dear Internet Friends, Hundreds of thousands of consumers collectively save... Read More

    The Future of Communications - Voice Over Internet

    When was the last time that you were able to... Read More

    Will VoIP be a Mass Market Product?

    A common thinking among "Marketing people " is that for... Read More

    What Is VOIP?

    Confused about VOIP? Join the crowd. It's not as difficult... Read More

    Should You ,VoIP?

    My friend in Florida, Samuel, called me last week and... Read More

    Voice over Internet Protocal VoIP for Business

    VoIP consists of 2 major technologies....Making Calls Over the Internet--ResidentialThis... Read More

    Google Joins the Internet Phone Revolution

    Its not so long ago that the idea of free... Read More

    Why VoIP is not Going to Fail

    VoIP is an almost constant topic in our daily dose... Read More

    Lower Videophone Prices Allow Individuals Accessibility

    VoIP service providers are now offering videophone at the lowest... Read More

    Alarm Systems & VoIP (Voice over Internet Protocol) Phone Lines

    An astounding and unexpected number of people are dropping their... Read More

    How VoIP Will Affect Every Household and Business in the World

    Seattle venture capitalist, Greg Gottesman, calls it "?one of the... Read More

    VOIP

    This article contains the excellent information about the Voice Over... Read More

    Things You Should Consider When Selecting a VoIP Provider

    The following are very important factors to consider when you... Read More

    Benefits of VoIP

    You may not have considered it but there are many... Read More

    Take Advantage of Internet Phone Calls (VOIP)

    Voice Over IP (VOIP) is a relatively new technology. Voice... Read More

    The Single Most Important Thing to Know About Computer Phones (VoIP)

    Over 90% of computer phones (VoIP) are not secure because... Read More