Office Business Telephone

Mar 30
2005
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Office Business Telephone

A New Approach To Long Distance Termination Long distance companies come and go, but very few introduce genuinely new technological approaches to telephony. The last big change was the introduction of VoIP to carry long distance calls and companies like Vonage and Skype. Now a new player comes into the Inter Exchange Connection (IXC) market that intends to revolutionize the long distance call termination business and provide termination service to long distance carriers for a fraction of what they are currently paying. They plan to take about 10 percent of the $800,000,000 monthly market. Eventually any long distance call must get either to the wire that goes directly to the phone being called or, in the case of cell phones, to the circuits that can track down where the phone is and route the call through the right cell phone tower. Typically that happens by sending the call to a large phone company, a cellular provider, or one of their resellers. That completely changes in the VoiParty long distance termination strategy. They like to describe themselves as putting telephone poles in individual homes, but a more appropriate metaphor is that they are a year 2010 version of the old small switchboards that rural families had in their homes at the beginning of the last century. Their technology is focused in small personalized VoiParty connection boxes about the size of DSL modems that people place into their own homes.

In a sense, the individual homes become a critical part of this new telephone company. VoiParty Technology Overview A simplified overview of this new technology is that long distance carriers direct their calls to VoiParty central offices in Florida or Montreal. The VoiParty computers look at the area and first three digits (the NPA-NXX) of the number being called and figure out which of the 1,300,000 homes with VoiParty boxes can complete the call. The VoiParty central computers talk to the little boxes over the internet. Then once a personalized VoiParty box is located, the central computer uses VoIP to get the call to that box. That still does not get the call to the desired telephone. VoiParty accomplishes this in an incredibly simple, yet innovative way. The personalized connection box simply uses a local telephone line to dial the local number. So, the long distance call starts at the originating phone, is connected to a long distance carrier, is connected to the VoiParty central office, then is routed to a personalized VoiParty connection box that places a local call to the desired telephone number. VoiParty Business Model Overview Not only is this an interesting technological approach to long distance call termination, it is also an extremely interesting business model. The 1,300,000 personalized VoiParty connection boxes will be purchased by individual homeowners. That means that each personalized box setup includes a high speed internet connection like DSL or cable, a VoiParty personalized connection box, and a dedicated local telephone number. It is presumed that homeowners who become involved with VoiParty will already be internet savvy and have the high speed internet connection.

They will need to acquire the VoiParty box and the dedicated local line. This means that the individual homeowners will provide a significant amount of the money required to capitalize the technology infrastructure. That is certainly a good thing for VoiParty, leading to significant cost reductions and lower prices. Consequently, VoiParty has also made it a good thing for the homeowners. VoiParty is creating what may be first genuinely passive income business for private individuals. A lot of passive income opportunities are advertised, but few actually generate residual income with virtually no work. In the VoiParty model, the company will sell long distance termination services to long distance carriers, then the calls will be terminated through the personalized boxes, then the homeowners will be compensated for it directly. It is the first time the telephone companies will pay you instead of the other way around. All the participating homeowners will do is watch the lights on the box flash and open their check. Homeowners Get Paid By the Phone Company The actual compensation comes in two forms. First, homeowners will get free VoIP based long distance service. In the beginning this will be throughout the USA and Canada, but expect that to grow. Second, VoiParty will actually give homeowners cash.

In addition, VoiParty is incentivizing participating homeowners to help build out the infrastructure by introducing VoiParty to other potentially participating homeowners. VoiParty couples a think out of the box technology with a unique business model. Watch for them to grow fast.

Ronald Morefield Photo
Ron Morefield has been involved in computer technology for over 30 years and has been a consultant to both Regional Bell Operating Companies and CLECs. He monitors VoIP developments and maintains several internet sites including VoiParty News.
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Written by admin in: Telephone Systems & PBX | Tags: business, business telephone, free, office business, office business telephone, phone, tools, voip

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