VoIP margins too low?
This mirrors something I was discussing with colleagues a few months ago… the notion that the VoIP and PSTN/VoIP market is a tough one to make any money in because the margins are extremely low and shrinking.
Om Malik says…
VoIP business is no different than the long distance business. High costs of acquisition, and very low margins. In other words it is a sucker’s game. One IP Voice, learnt this the hard way, and had to file2 for Chapter 11 Bankruptcy protection as it tries restructures. Good luck! The company sells VoIP to small and medium sized businesses. Well good luck with the makeover, because selling VoIP to SMB is beset with precisely the same problems as the consumer market. Too many players, too little profit. We will see more of these press releases in 2007
The company in question incidentally is called “One IP Voice, inc.”
OA by Om Malik is here