BT Plans To Compete With VoIP... By Actually Competing

from the doubletake dept

There's little doubt that VoIP poses quite a threat to telephone operators, and many of them have responded in predictable ways: trying to get regulators to block VoIP, trying to get network neutrality rules thrown out, saying VoIP providers should have to pay to send data across their lines, "price blocking" end users, or simply just blocking the traffic themselves. So when UK operator BT announced its strategy for competing with VoIP providers, it was surprising to see that it will do so by cutting its prices and improving its offerings, rather than some reactive and defensive approach. The head of BT's retail unit says although the move will cannibalize some of the company's existing fixed-line voice business, it will also help it to sell more broadband connections. Wait -- the head of a major telco saying that VoIP and other applications can make broadband more desirable and valuable to consumers? And that it will battle Skype and other providers by offering a better service? Radical thinking indeed.

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