Problems for Voip

(1) By June 2006, VoIP2.biz Inc. had yet to break even financially from either a profit or cash flow standpoint. Revenue for October through December of 2005 totaled only $88,000 but resulted in a net loss of $86,000. For 2006, financial results are expected to be somewhat better with the revenue expected to be $150,000, but earnings before taxes is expected to be negative $66,000.
(2) Internet has not yet had a major impact on business voice communication that was expected; several studies had foreseen that business was at the beginning of the next phase of utilizing the internet to further to reduce cost.
(3) In order to take advantage of IP networking cost savings and functional enhancements, customers have to replace their existing PBX.
Competitors
(4) Organization such as Digium, the author of Asterisk and Pingtel, developed application software that functions just like PBX, yet runs on commodity PC hardware under Linux. These system, available are available for free and distributed as “open source” applications, provide virtually all of the features of the proprietary PBX, plus directly support IP trunking and at a cost of as little as 10 percent of the traditional vendor’s PBX.
(5) Incumbent local exchange carriers (ILEC’s), principally AT &T and Verizon in Indiana, have long dominated the traditional market for voice communication. They sell network service through a variety of channels, based on business size.
(6) AOL, MSN, and other national ISPs should soon be rolling out residential VoIP services.   Internet Service providers have long searched for an additional value-added service they could offer in addition to internet access.   Management expects wireless ISPs would also be interested in adding VoIP services.
(7) VARs and interconnects have traditionally provided a competitive alternative to the ILECs for smaller firms usually at lower cost point.
(8) Data networking solution providers have historically sold, installed, and serviced data...