Are old fashioned telecom companies fighting a losing battle again hosted VoIP telecoms?
Posted by Cloud Net on Wed, May 19, 2010 @ 03:36 AM
Latest news reports coming from BT mention that they are selling
off their stake in Tech Mahindra, an IT provider in India. This will help raise them around £500m which will probably go towards paying off their large debt of apparently around £10billion. Tony Chanmugam BT's new head of finance is responsible for the sale and has already managed to cut £1.6billion of debts from BT in the last 9 months.
However BT's sales have declined for six straight quarters and we firmly believe that one of the causes is the growth in hosted VoIP services. Hosted telecoms companies are growing at fast pace since the benefits of adopting a hosted VoIP solution are clear for everyone to see. With great cost benefits and a wide range of features, they offer customers a complete phone system at the fraction of the price of traditional phone systems.
When hosted telecoms first appeared, there were early quality of service issues but as technology has developed the quality of VoIP has become near perfect.
BT is just the tip of the iceberg, other telecom companies also continue to trade with large debts: Virgin Media has debts of around £6billion, Cable and Wireless Worldwide have approximately £830million debt and Talk Talk around £860 million. The impact of hosted telecoms is clearly affecting traditional telecom companies. would you take the risk with a new phone system from a company with large debts?
Written by Kevin Box, Cloud Net
Reference
http://business.timesonline.co.uk/tol/business/industry_sectors/telecoms/article7113928.ece