Telstra bites the VoIP bullet

Telstra’s face-off with IP destiny is gathering steam. The company will reportedly spend millions on residential VoIP trials that will see customers effectively connect an IP phone to their broadband connection. (via Google News)

Interestingly enough, AAPT tackled the VoIP issue at our CIO Conference yesterday. AAPT, like all the carriers, are quick to argue that VoIP is not the free phone call nirvana many believe. Buying a stack of Cisco or Avaya kit and ditching the PABX is a task few CIOs will undertake lightly. The cost savings are there, but the calls (in a big company context) are not “free,” AAPT’s Jeff Putt argued.

Putt answered questions about the future of a free service like Skype (which I’ve used twice today for international business calls) by arguing a big company will not migrate to a service that’s great for “individuals.” You just can’t bet the business on it, he said, and I agree for the moment.

But Telstra’s move is all about the individual consumer. And as long as free services like Skype are out there setting the “free” agenda, pricing will always be under pressure. Sure, I’d pay a little extra to add an IP phone to my broadband connection and cancel my old switched phone (assuming the service is good enough). But I’d only do that if my total communications costs dropped.