VoIP

In several of the class lectures, we discussed web-based products that benefit from network effects. One of the products metioned was Voice over Internet Protocol (VoIP). We learned that the service can be provided for a very low price, some providers offer it for free, due to the cost structure of web-based products (high fixed costs, but low variable costs). VoIP interested me because who wouldn't want a product that is inexpensive and becomes more valuable to each user as the number of product users increases? To answer my question, I decided to search for disadvantages of the product.

The disadvantages of VoIP are few, but serious. First, the service does not work during power outages because internet connections require power. Therefore, no calls can be made or received during such an emergency. VoIP fails to provide perfect service during another emergency situation, as well. The origin of VoIP calls to 911 cannot be traced, so developers are working on a standard called e911 as a solution.

Although there are still technical glitches, VoIP has a very promising future. The service is gaining more and more users every year, and VoIP is expanding into other industries, such as video games.

"The Advantages and Disadvantages of Using VoIP" is an excellent article from Ezinearticles.com to read and learn more about the service.