Phone innovation not as fast as software innovation

Jeff Raikes, business division president at Microsoft, says VoIP is a natural move. But adds to USA Today: “Phone innovation hasn’t really kept pace with the kind of software innovation we’ve all seen in the PC industry.”

Is VoIP bottlenecked?

Maybe, or said differently, “success is far from guaranteed,” as told telecom analyst Bill Hughes at researcher In-Stat. “Existing phone companies have two huge advantages, he says: entrenchment and experience.”

And that is true. In order to go deeper into telecom ventures, Internet businesses need more than VoIP software. PC-to-PC won’t last. They need to expand on mobile phones, a lot more profitable, but a lot more risky in the same time.

The reason? The launch cost of a new application. Much higher. In order to expand onto mobile phones, there should be more interoperability between vendors’ operating systems. But this isn’t for now.

Your opinion on this?

Jul 5, 2006 | By Nuno

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