Thursday, February 05, 2004

So let me get this straight. First these guys create KaZaA, the software that brought the music industry to its knees by allowing people to share music across the internet.

Then they decide, Hmmm. What if telephone calls were free? That'd be pretty cool, huh?

So they designed software that allows people to have high quality voice conversations over the internet anywhere in the world for free.

Jiminy Crickets, it seems like the only big LOSERS in this deal would be the telephone companies. How about that?

So what does this have to do with the Yellow Pages you ask.

Let me explain it thusly . . .

Big telco spends billions laying fiber optics all over the world, because hey, the data is where all the money is, right?

Well, selling high speed internet access nets big telco (or big cable company) exactly $25 per month for unlimited use. (not exactly paying for those fat pipes)

Smarty pants software developers figure out how John Q. Public can spend 99% less on long distance charges by using SKYPE instead of reaching out and touching someone.

Mr. Aggressive Cable Company and Mr. CLEC offer local telephone service further whacking big telco in the knees (or parts slightly north).

So where does big telco make up all that lost money? Who could they possibly squeeze big rate increases from?

Gee, let your fingers do the walking and figure this one out yourself.


Once again, you heard it here first.


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