RBOCS Move Ahead With Voice Oer Packet Services

CEDAR KNOLLS, NJ- All four U.S. RBOCs are taking more aggressive steps in voice over IP (VoIP) service. Currently, each RBOC's strategy is influenced by its unique market. A direct confrontation awaits, however, as these companies move forward with their deployments.

"RBOCs today are driven to VoIP," comments Allan Tumolillo, COO of Probe Financial Associates, an independent financial analyst firm. "Smaller providers are encroaching on their residential and small business turf. VoIP permits an extension of services to enterprises outside of the RBOCs' franchised territories."

IP telephony will reduce the incumbents' capital expenditures and future operating costs. "In the future they will emphasize low-cost service creation and customer self-provisioning," continues Tumolillo. "VoIP reduces capex as the RBOCs expand their long distance and data offerings without having to invest more in less profitable regulated services." These first moves are the start of a sustained wave of telco spending.

PFA's new report, "VoIP: The RBOCs Are Moving Ahead," examines the current state of RBOC VoIP strategies, the competitive landscape and the implications for VoIP equipment vendors.
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