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Dangers
by Dameon Welch-Abemathy on June 10, 2008
It's funny, we hear a lot about free calls on different services. While that's great for the end user, those free calls cost someone and companies are finally starting to realize that they can't keep giving the store away.
Two recent examples of this are MOBIVOX and Truphone, both of which recently discontinued their free calling. Truphone has always been clear their free calling within 40 countries has always been a promotional deal, whereas MOBIVOX is taking away free calling between MOBIVOX members-one of their big marketing messages, at least historically.
Even Skype's "free" calls cost some money-even if the calls never touch the PSTN. Maintenance of the Skype network itself does cost Skype some money, but the bulk of the cost-the data transport of the call itself-is spread out across the Internet. All of this serves to reduce the cost for Skype to provide the service, but make no mistake that a marginal cost is still there.
Two recent examples of this are MOBIVOX and Truphone, both of which recently discontinued their free calling. Truphone has always been clear their free calling within 40 countries has always been a promotional deal, whereas MOBIVOX is taking away free calling between MOBIVOX members-one of their big marketing messages, at least historically.
Even Skype's "free" calls cost some money-even if the calls never touch the PSTN. Maintenance of the Skype network itself does cost Skype some money, but the bulk of the cost-the data transport of the call itself-is spread out across the Internet. All of this serves to reduce the cost for Skype to provide the service, but make no mistake that a marginal cost is still there.
Permalink: No Such Thing As Free Calls
Trackback: http://publish.creative-weblogging.com/publish/mt-tb.pl/125901
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Vote for No Such Thing As Free Calls:
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Rating: 10.00 out of 1 vote(s) cast.
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Response from:
Greg Spector
(06/10/08 11:35am)
Greg from Rebtel, here. Just want you to know that Rebtel still stands up for the consumer. We still offer free calls between 46 counties. Yes - you have to jump through a hoop or two to do it -- but it's free and will continue to be free.
Response from:
spg
(06/10/08 6:42pm)
whether or not there is any such thing as free calls(it certainly seems at least as free as the 'free food and beer' we used to eat and drink as college students by hitting up the carious happy hours around town; that is as long as you take up the various promo offers) i do believe that promoting the concept that there is 'no such thing as free calls' only discourages people from trying VOIP in the first place. free(or cheaper) calls are after all still the dominating reason for using VOIP.
Response from:
Dameon Welch-Abernathy
(06/11/08 5:15am)
@greg but I know that those free calls on Rebtel cost you something. Hopefully your financials are in better shape than MOBIVOX's.
@spg People need to understand that free anything has a cost associated with it. Google is able to provide me with free email for my family--on two different domains no less--without monetary cost from me. The "price" I pay is that Google serves me ads and probably knows way more about me than I want anyone to know. The cost to Google to provide me that service is marginal.
@spg People need to understand that free anything has a cost associated with it. Google is able to provide me with free email for my family--on two different domains no less--without monetary cost from me. The "price" I pay is that Google serves me ads and probably knows way more about me than I want anyone to know. The cost to Google to provide me that service is marginal.
Response from:
Jim Courtney
(06/15/08 5:24pm)
Truphone has maintained free calls between two Truphone users where there are no termination charges involved; they have ended their promotion of free calls to the PSTN which have termination charges they must cover.
Response from:
Dameon Welch-Abernathy
(06/16/08 9:37pm)
@jim I suspect all VoIP providers will continue to offer free calling to members of the same provider. Discontinuation of free PSTN calls is the "issue" here.
Response from:
John Q. Public
(07/03/09 2:03pm)
The company that brought us the famous "DukaDial" has just discontinued its FREE calling anywhere in the U.S. service on July 2, 2009. It was a great service - you logged in on their website, entered the number that you wanted to call, then your home phone would ring with an animated voice saying, "your call is being connected". I did this type of home long distance calling for over a year with them. Saved me many $$! Now I'm on my quest to find another similar service.
Response from:
marginal
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