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Friday, September 30, 2005

Vonage Report - Part 2

Referring to the leftover problem in my earlier post, Vonage stayed with it a long time, but in the end the problem has been tossed back to BellSouth. Vonage's take is that the BellSouth line is not capable of transferring calls when it is still in use. I seem to remember from my old telephony days that this is only true for a certain number of calls, but I did not want to argue the point. I was so pleased that they at least made the attempt that I accepted the answer and went away mostly happy.

Still, Vonage does need more reps like the one who helped me and stayed with the problem until the last. I wish them luck in finding more good people to boost this end of their service.

VoIP Pricing Heats Up in the UK

Looks like market forces are well into action as a pricewar is developing over the provisioin of VoIP services. Dixon's entry into the marketplace seems to be the catalyst, but we know it had to happen sooner or later. Now, if we could only get (landline) number portability...

Sunday, September 18, 2005

Vonage - Customer Support and other issues

If you've been here before, you know that we believe Vonage is the best VoIP option going for general all-around service. We've been with them for over a year, and overall things work well.

There have been a few glitches, however. We have not pulled our punches when talking about the company's shortcomings, especially in the area of support. Yesterday my list had gotten to about 5 items, so I decided it was time to call. As is typical for most companies today, the Interactive Voice Responce (IVR) greetings are very much designed to convince you to go back to the website to solve your problems. After pressing a lot of numbers, I arrived at a queue which took about 25 minutes waiting time before a support rep came on line.

We easily dispached most problems in the first 5 minutes, but it took a few minutes longer to explain my major issue. I have to say that the rep stayed with me and finally understood the problem. We were on the phone for almost an hour, and during that time he ran several tests. I appreciated the time he took to help me solve a problem about which BellSouth had simply told me to "buzz off". Overall, though lenghty, the call ended with a resolution to 3 of my (minor) issues, a less than satisfying answer to one and a ticket to 2nd level support for the last one.

So, what are the outstanding issues? Not biggies, but it's a bit of the finesse we should expect for such a widely disseminated service and are surprised not to find:

1. Caller ID name display on outgoing calls - This is a "known issue" which has been the subject of many complaints, according to our support rep. The problem is that when you place a call, the person on the other end can only see your number - not your name. The rep called me back a few times during our testing, and on some calls "Vonage" appeared in the name field but on others it simply said "Out of Area". The rep stated that this is happening on all Vonage-supplied telephone numbers. If you transfer an existing "landline" number to them, and if you check the appropriate box on the Letter of Authorization, the caller ID should continue to transmit whatever it did when your local operating telephone company had provided the line. (In my case it was not, so this is being looked into.)

2. Call transfer problems to hunt groups - If you have multiple Vonage lines, it is possible to set up a "hunt group" which tells the system to transfer to the 2nd line if the first is busy, and so on, until finally ending at voice mail. This is a great feature; it is easy to administer and it works fine. Except...if you have kept a local telco-supplied number and simply transfer that to the first line of your hunt group, for some reason the proper signalling is not worked out between the two. The result is that when you are on the first line of the hunt group and you call your telco-suppplied number, you get a busy signal instead of transferring on to line 2, etc. This problem had been upgraded to 2nd level support. We'll let you know the answers.

In summary, all the VoIP compaines have their positives and negatives, but we still believe that Vonage provides the best blend of service. Their main negative, in our opinion, is that they are still not balancing their capital expenditures properly. At some point one must take a little money off the marketing table and put it over into servicing customers properly. It's hard to imagine that they haven't heard about the old addage that your best new customers are the ones you keep from leaving!

Tuesday, September 13, 2005

eBay and Skype to Merge

Yesterday's announcement that eBay is to acquire Skype has set the user community ablaze with questions about how the merger will affect both companies. Meg Whitman, eBay CEO, insists that the tecnology will be integrated into eBay's auction flow, enabling future services whereby prospective buyers and sellers could communicate by voice regarding items on auction. All this would come at an additional price, of course, which eBay is banking on to increase their revenue and help drive them into yet another quantum stock leap.

But Skype users, 54 million strong and growing at 150,000 a day, are waiting a signal that it will still be business as usual at the VoIP company. There is probably not much worry that they will be left out in the cold, but the real question is one of price-points. If eBay plans to use Skype as a value-added feature, what about eBayer's who are also Skype users today?

All this will be revealed over time, but in the interim, we can't help but wonder at the $2.6 - $4.1 billion price tag for a company that, while strong and growing, is still set to generate only about $60 million in sales this year. That's a pretty high multiple, and it goes without saying that eBay needs some specific plans put in place quickly to make it worthwhile.



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Wednesday, September 07, 2005

VoWiFi - VoIP and WiFi Converge!

A recent article in TIME Europe Magazine offers a glimpse of just how broad-reaching the use of VoIP on WiFi (VoWiFi) could be - today's mobile telephone companies could be set for dramatic changes as this technology moves forward.

One important step is the apparent total adoption of the technology by the current handset providers. Motorola is actually teaming with Skype, the European up-start VoIP company who seem to be taking the world by storm, to create Skype-enabled handsets. The effect on the mobile phone providers should not be underestimated - this will have a hugh impact on their business in one way or the other.