VoIP: Amidst Wreckage, Profits Emerge
Posted by: Olga Kharif on August 21, 2007
Over the past half a year, bad news seems to have completely blocked out the good news in the Voice over Internet Protocol (VoIP) industry: Vonage has been dealing with legal woes. SunRocket went out of business. Skype had battled a service outage.
But I want to talk about the good news: More and more Web-calling companies are getting to profitability. Skype has been profitable for a couple of quarters. InPhonex, a provider of business-class VoIP services, is profitable and debt-free, according to the company. Packet8 recently turned a profit, albeit one due to a one-time event.
This is the first proof that, despite fierce competition from cable companies and telcos, VoIP can be a viable stand-alone business. With good business practices and cost controls in place, perhaps even Vonage could become profitable.