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MCI to Test Consumer VoIP Service

By Ed Oswald, BetaNews

June 24, 2005, 11:41 AM

MCI last week quietly began a small trial of a voice over IP (VoIP) service for residential subscribers. 5,000 customers in select markets were given the opportunity to test the service, and could pick from either 500 minutes for $19.99 or unlimited calling for $29.99 per month.

At the end of the trial, MCI will make a decision whether such a VoIP phone service is viable, company representatives told Reuters.

The company says the program has nothing to do with the Verizon merger and is proceeding indenpendently of the consolidation. MCI was bought by Verizon after a long drawn out battle with Qwest for $8.6 billion in cash and stock.

The possible addition of VoIP to MCI's lineup comes at a time when revenues from traditional consumer services are shrinking. Companies like AT&T and Verizon are turning to emerging technologies such as VoIP for new revenue streams, hoping to offset these declines.

If MCI decides to throw its hat into the ring of VoIP, it would be the third major telephone company to do so. AT&T offers CallVantage, and Verizon offers VoiceWing. SBC has said that it could resell CallVantage service to its customers, although a decision has not been made.

In any case, these services seem to do better than independent VoIP companies. Vonage, the only major independent VoIP provider counts about 600,000 subscribers. On the other hand, existing telecoms are expected to have close to 2 million VoIP subscribers by year's end.

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By horsecharles

edited Jun 24, 2005 - 6:40 PM

MCI's never gotten it on pricing-- in fact, they've usually been the highest-priced among the big names(and by a large margin at that, with a lot of fine print exceptions to their already-not-so-low-priced plans leading to usurious monthly bills, unless pored over in detail & strictly adhered to)-- it's a wonder they've survived this far.

So now they expect to drum up new business in spite of competitors offering limited plans in the $6.99 to $14.99 range, unlimited local & long distance $14.99 - $19.99...add another $5 for unlimited calling to an additional continent of your choice.... this to boot with a bunch of features i'd bet MCI won't include, like additional free # in area code of your choice, included phone card so you can use the plan minutes when on the road, voicemail & fax to email, free wireless phones, landline phone adapter and/or voip modem, etc...
And even those low-priced unlimited plans may be unneeded if already possessing a cell phone with a good plan...

BTW Vonage, cited in this quote: 'In any case, these services seem to do better than independent VoIP companies. Vonage, the only major independent VoIP provider counts about 600,000 subscribers',
Vonage is a lot like the big telcos, too high-priced and doesn't offer as many perks / features as the smaller independent voip competitors...

For us consumers, there is 1 & only 1 benefit from using the big players: credit / billing; but we pay big-time for this unnecessary privilege by not pre-paying the measly few dollars a month of service: we get the right to divulge scads of personal data / give up our privacy & pay several more times the price(we pay extra for the 'established brand name' & further- all entitlements & plundering rights said corporation deems appropriate for having reached such lofty status: like plan exceptions hidden in the fine print, plus a slew of surcharges / taxes extorted by it & various political entities, etc. ).

Contrast this to signing up with a lean, mean, hungry entity that wants a chance to demonstrate how much it wants our business: gives us free wireless phones / adapter, free extra phone number, phone card to use those minutes on the road, doesn't demand tons of private data...

Score: 0

By kgruber

posted Jun 27, 2005 - 12:24 AM

The fallacy of your posting is it assumes that all VoIP providers are alike except for price and features while ignoring quality and support and that the underlying hardware is compatible with competition.

I was looking at choosing Vonage vs. Lingo. Lingo offered the same service for about $5.00 less than Vonage. However, I chose to go with Vonage. Why? I didn't have to invest in any equipment (e.g. phone adapted was free) and the strength of the name brand and userbase gave me confidence in spending the extra few bucks a month.

Will I stay with them forever? Depends on the strength and offerings of the competition. At the present Lingo doesn't offer me the comfort and assurance. Vonage hasn't died on me yet! How reliable is the competition and what is the voice quality?

Is MCI's offer that unreasonable? Comcast is offering a similar service for $39.99/mo.

I look forward to the day when VoIP equipment is provider agnostic. That will be the day when consumers have the choice to switch providers and not having to deal with making another financial investment in new hardware.

Score: 0

By horsecharles

posted Jun 28, 2005 - 8:20 AM

And your two fallacies:
a. you misinterpreted part of what i said,
b. not enough research and actual testing re this topic-- & btw i don't consider myself at all knowledgeable on this.

1. Talking about vonage vs lingo vs comcast vs mci, and esp. using that 39.99 figure, is too superficial of a look at this industry segment, and several levels behind the ball.
2. Without delving too deep: there are providers offering for in the teens unlimited local & international, local & national for between $5 & 9.
3. Take it a step further: get your own equipment to handle multiple lines-- not just one or two-- be willing to if necessary tweak hardware / network settings & download modded firmware(no, nothing illegal or against TOS)-- and you can have worldwide calling for $0, yes 0; by combining free unlimited incoming providers w/ free unlimited ougoing providers, while utilizing standard phones--no kludgy software or having to have the computer on.
4. Your QOS concerns, at $40- or even half of that- have merit, but at $0 or just a few dollars-- hey, you can sample a dozen or more providers & keep what you like...i like using 4 permanently: two back up the two main ones.
You should try them out for yourself, because even the big boys have problems or will have a region or two where their service lags; and yes, you can stick only with the ones that have been around for a few years--who, even if not directly selling to the public, some of them have been providing basic service & infrastructure to the majors. The lack here of established direct service & a proprietary customer base is offset by the substantial experience / expertise; this is what i meant by paying for a brand- some company that comes along, slaps their label one and resells someone elses's product. The only potential major advantage w/ a major, is their already-established service agreements with others, enabling it to cover larger areas-- but this is where one's own actual testing, for practically zilch to boot, overrides that.
5. Support? Which major telco provides decent support? Anyhow, if i have my own equipment & backup providers that cost me nothing or just a few dollars extra, what do i care if there's a temporary/regional service glitch? I will always have an alternate line to make free calls with.
Extra benefit: I can even auto-forward for free to my cell phone or another line all my calls when i leave the house.
Someone in a dire situation, that has to receive all their incoming calls, can't miss a single one-- well, they can go to Virgin Mobile Pay as You Go: they have a $25 phone that comes w/ a $25 card-- 3 months later, and every 3 months, they must add $20; so discounting the phone price, that's 60 / 12, for $5 a month this'll be their home phone-- they can then buy a cellular adapter and connect all their regular phones to it, run another line to the voip adapter & its unlimited free-or-low-price outgoing services, and not skip a beat.

Peace.

Score: 0