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November 10, 2004

BT's blunderbuss

In respect of BT's news today that their consumer broadband offering will include unlimited free landline calls via VoIP, it's hard to top my brother's analysis:

... somewhere within BT there is one division trying to sell capacity, and somewhere else there is division trying to sell scarcity and having a really bad day.

I guess BT has worked out that as the dominant telco they can offer on-net calls cheaper than anyone else (notwithstanding the efforts of the regulator to create a level pricing field). Hence the differentiator.

Anyway, nice to see my prediction that the correct price for basic VoIP service is zero come true so fast.

Posted by Martin Geddes at 7:03 PM
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