Quote:
Originally Posted by Pierre
It is with a heavy heart that VM are moving to VoIP. The VM TDM voice network is a huge cash cow for them. But the infrastructure is old and all but obsolete. It won't be a quick change. VoIP services won't start appearing for at least another year, probably two. The programme won't be completed until 2025 when the last of the telco cabs will be removed.
|
Blimey. Not quite the speedy transition I had in mind.
Thanks for info.
---------- Post added at 20:36 ---------- Previous post was at 20:23 ----------
Quote:
Originally Posted by 1andrew1
If the gain in customers would produce more profit than the loss of line rental then why would they not do it now? VM and others have teams of pricing analysts dedicated to getting the most profit out of their customer base and regularly run things like this across their yield models. The fact is, VM's competitors would respond, every company would be worse off and network expansion and other investment would be harder to justify.
|
The cable bosses up to now have been narrow minded, expansion of the network being the best example of this.
It costs money to expand, so they didn't. Result, customer base has been stagnant for years.
It'll cost money to move over to VOIP and going by the last reply, that process will take 10 years.
VM get money for doing nothing. Line rental is in effect a connectivity charge. They do nothing and earn loads of dosh from it. But its short sighted. They could've marketed their advanced cable network without old copper telephone technology and still undercut rivals on price. It would cost them initially, but I am certain they would gain in the long run.
Yes of course, competitors wouldn't stand still. BT are rolling out more fibre, but how many years and men up poles will that take? VM have an inbuilt advantage with their network that they they have never used, apart from a brief time when they were doing VOD and no one else was.