Feb 1 Launch: Toll-Free Numbers, Online Faxing, Virtual Numbers

[Brian]

For market segmentation purposes, you might consider a "Titanium Plan" at the $24.99 price point, which includes 5,000 minutes of calling, with extra minutes at 4¢. Also a "Platinum Plan" at the $20.99 price point with 2,500 minutes of calling, with extra minutes at 3¢ each, and a "Gold Plan" at the $14.99 price point with 500 minutes of calling, with extra minutes at 3¢ each. Term discounts apply to the fixed plan charge, not to the usage charges. By staying out of the "unlimited" game, you'll be avoiding the 3rd World Dictionary Police (otherwise known as home based telemarketers and phone rooms) and scaring off the heavy users who you don't want anyway, and you'll have a compelling reason for subscribers to enroll their "friends and family" because VOIPO to VOIPO will not count against their allowance (like Verizon Wireless IN-NETWORK)! For heavy international users, offer a $5 monthly fee in return for a 5% discount on your international rates. Send all your Directory Assistance traffic to 1-800-YELLOW PAGES and advertise no extra charge for directory assistance calls.

Rocky,

Although I think your concept here is great, the only problem is public perception. It's the reason all the cell companies offer "unlimited" texting, cable companies offer "unlimited" internet access, and other voip companies offer "unlimited" calling. Even though you can offer a 5,000 minute plan (and if you had an unlimited plan, it would be soft capped somewhere around here anyway), Joe User is going to look at that say say "Gee, Vonage gives me unlimited calls, VOIPo only gives me 5,000 minutes" - without thinking about what 5,000 minutes really means. So, as far as marketing, I think you'd be at a major disadvantage here, although realistically everyone would be a whole lot better.

[dswartz]

Rocky made some good points, although I disagree with the "don't give ATA that is not a router". How many people nowadays don't have broadband already? If they do, they already *have* a router! I have seen more bugs and confusion involved with someone trying to get a voip "router" working in an already existing broadband setup (does the voip "router" go in front of the existing one? behind it? how do you keep the real router from intefering with the voip one?) I think this is completely backwards!

[gbh2o]

Rocky,

Although I think your concept here is great, the only problem is public perception. It's the reason all the cell companies offer "unlimited" texting, cable companies offer "unlimited" internet access, and other voip companies offer "unlimited" calling. Even though you can offer a 5,000 minute plan (and if you had an unlimited plan, it would be soft capped somewhere around here anyway), Joe User is going to look at that say say "Gee, Vonage gives me unlimited calls, VOIPo only gives me 5,000 minutes" - without thinking about what 5,000 minutes really means. So, as far as marketing, I think you'd be at a major disadvantage here, although realistically everyone would be a whole lot better.

I think that RockyBB is presenting a great idea of keeping VOIPo above the game of lies. Perhaps an advertising campaign that would compare VOIPos 'generous' offerings with the hidden/true caps buried in competitors TOS or determined through customer or news reports. VoSPs seem slow to recognize that the market has been putting a fair amount of pressure on the cellular, cable and satellite industries to 'clarify' their terms and modify draconian terms... although AT&T seems a bit slow to do anything but add a bit of foggy fluff. Then there are those few, but growing, number of state AGs that are dragging service providers to court to get 'truth-in-marketing' for their citizens. The 'professor' at a chalk board [do those things still exist] of flip charts comparing competitors 'real' numbers to educate the public might work.

Of course, all those plans and price points would depend on whether inbound minutes are charged against that pool of minutes. I don't think they can realistically charge for them separately in the residential 'plan-type' market. So, I would think that the proposed pools are probably unrealistic for outbound-only at those 'platinum' and 'titanium' levels. Of course, I don't have access to the massive wholesale market and associated costs, so I can't speak authoritatively on what US/Canadian retail per-minute rate might be profitable! And I don't know the general usage patterns for average families, etc. MY 'impression' is that 1500 minutes outbound is an _average_ use for the smaller family, but that a teenager or two blow that number away quickly, with their use unfortunately primarily higher cost intrastate, when it can be tracked.

I would say that overage charges should only be high enough to encourage moving to a higher tier if appropriate based on consistent usage. A _reasonable_ overage rate for the occasional spike probably would be a feel-good point with your customers. They shouldn't live in fear of it; stuff happens!


Oh well, I can only guess what makes people happy, and what makes for reasonable profit without good information/data on which to base my suggestions. ;-)