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« JAZZCAST: TURN OUT THE STARS (SOLO PIANO) | Main | OKTOBERFEST 2005 »

18 December 2005

Comments

Phil

Ouriel

I read that information and it sounds to me like a revolution as well, but also like a growing threat for traditionnal telcos and new VOIP players. The answer to your question is the volume. Free and 9TEL are both prepaid card resellers which means that they are purchasing a lot of minutes to historical or alternative telecom carriers. Those volumes enable them to launch such offers with low margins. All the destinations that they are selling are already cheap destinations for them. For eg, you can purchase a minute to Europe or the US for less than 0.05 Euros on this market. The more you call developed countries such as European ones or the US, the cheapest it is for the carrier and now for the end user.
Free Telecom will also include Israel in this monthly flat fee, which means Israel is considered now as a real Western destination :-) . Of course those very agressive offers will not include minutes to Africa and Magreb which are the biggest international demand in Europe, and where the margins are. So it means that Free and 9TEL will keep on developing their telephony business over DSL without losing profitability. Smart move!

ouriel

Merci Phil!

Pat Smith

My understanding is that Skype is now offering international calls for a low monthly fee. Maybethis is their answer to a perceived loss in the market.

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