The Flat Planet and a Phone !

David Pogue, one of my favorite tech writers (don’t miss his video reviews!) published recently a review of the leading so called free call services. David’s reviews usually cut through the technical mumbo jumbo while portraying the latest gadgets in simple English.

As expected David runs thru the leading services and explains the catches in each one. Usually I love his articles, but in this case I must disagree with his presumption that there is such a thing as free calls. Sure, all the companies he reviews want you to believe that there is , after all that is the basis of their marketing. But that is where I expect David Pogue to come in and cut out the BS (excuse my language) and tell us the truth.

Since, David did not, I will take his place and tell the truth. There is no such thing as free calls. Period. Yes, one day, in 10 years or so, when the world is one big IP cloud, there might be, but not now.

Let’s take a look at VoIP services. PC to PC calls (Skype & Co.) are free? Right? Well sorta, but in reality you still have to pay for your bandwidth, and the more people talk on your network, the more B/W you need.

Then there are all the companies offering free calls to regular phones, otherwise known as the PSTN. Are they free? No, how can they be? Someone needs to pay the telephone company to deliver the call to the subscribers telephone. So how do they do it? Slick marketers use alternative funding sources (such as the $25m they got from a smart VC) to pay for the calls and then tell you that calls are free. Others, lose money on the calls and make it up on services.

Why does this fake marketing bother me? It bothers me since consumers today assume that free calls are possible. This assumption harms honest companies who must cut their prices to compete with the free call promoters. Since they are not really free, these services don’t and won’t last forever, but meanwhile they are harming the industry as a whole.

Here is my call to all internet phone service providers - Tell the Truth! When you offer free calls, be open about your business model, explain how you do it, and why you think you will be able to sustain this model for the long term. Give the consumer the information to make a educated decision. We, members of the industry and consumers will thank you.