Companion Animal Specialty and Emergency Hospital has rapidly become a networking hero in North West Chicago. They serve the demands of area veterinarians and clients with specialized internal medicine, physical therapy and skilled surgical services. Their practice grew from a need in 1997 to help general veterinary staff with after-hours and weekend emergency coverage. Facility … Read more
continued from part 1. Sound Infrastructure Choices Look for long term solutions with broad compatibility when choosing a software solutions. Generally, open source platforms are easier for other vendors to integrate their add-on solutions with and help keep costs lower. Consider that today your company may only need an accounting program with payroll software, but … Read more
Wars are won through effective communication and managing logistics. Political campaigns are no different. Effective campaign managers, like generals, must have an ability to rally staff to execute on an established plan with a central goal in mind. While political campaign battles are waged with words, the technology used should be just as cutting edge … Read more
Perception is everything. You may be incredibly busy and sometimes, it is a fact of life that a large number of your callers get shuffled off to voicemail. Just because you’re busy doesn’t mean you shouldn’t take a couple minutes to think about what your voicemail is saying to your callers. What you said: “Hi … Read more
Telephone fraud has been going on for a long time. It became prevalent in the 1960s, when DTMF (Dual-Tone Multiple Frequency) dialing was being introduced to replace pulse dialing from then-current rotary phones. Crafty individuals educated themselves and fabricated handheld red, black, and blue boxes that could generate the necessary tones to alter the target … Read more
Today I am pleased to announce the launch of the 5th major release of the DLS Hosted PBX. This release includes a number of significant enhancements to Queues, Faxing, Conferencing, Voicemail, Reporting, Call Routing, Predictive Dialer, and Interface Configuration. This release also includes some new features: LDAP Authentication, Multi-Tenant Support, and provisioning for Cisco 7945 handset and Bria softphone.
In many ways, VoIP regulations and taxes favor larger corporations, in both financial and structural ways.
The Price Competition Factor- Who Pays the Bill?
As VoIP services find themselves increasingly taxed at the State and Federal level, there’s a big question of who, exactly, will pay for these taxes, and how these tax increases will affect competition between large providers and small providers.
Generally speaking, large providers almost always have a price advantage over small providers. That isn’t to say large providers offer a greater value than small providers, but it is to say their economies of scale almost always ensure they can sell their services for less than their smaller competition.
This gives larger providers a distinct market advantage over smaller providers as taxes on VoIP increase. Larger providers are going to be better able to pass these taxes directly on to their customers instead of paying them out of pocket. Often they’ll be able to do so while still offering cheaper services than smaller providers.
Smaller providers face a bigger question as taxes rise- should they make their customers pay these taxes, raising their rates? Or should they pay these taxes themselves, sacrificing some of their already slim margins in order to continue to serve their customers at the same price point those customers are accustomed to?
Once again- let’s reiterate that we aren’t talking about value here, that we’re only talking about price. When it comes to price, larger providers almost always have leverage over smaller providers, which means these increased tax burdens have hurt smaller providers far more than their larger competition.
The government has never really known what to do with VoIP.
On the one hand, VoIP is a telephony service, and as such some people argue it should be regulated and taxed in the same vein as other telephony services (such as traditional PTSN networks).
On the other hand, VoIP is an online service, a platform that isn’t so different from any other online application you might utilize, and one that should be open to new, small service providers. Seen from this angle, the notion of taxing and regulating VoIP has been a thorny issue, to say the least.
Over the years, as VoIP has increased and improved the services it’s offered and gradually transformed further and further into a full-service telephony platform, VoIP has seen increasing regulatory and tax burdens placed upon it. These burdens have dramatically changed the VoIP landscape- especially for small VoIP providers and organizations looking to become VoIP providers.
The reasons behind the drop in the telephony market are made clear in a statement tucked away in Infonetics’ report, which says:
“In the first quarter of 2013, enterprise PBX spending dropped to its lowest point since mid-2009. The big squeeze is coming from hyper-competitive price pressure all over, with average revenue per line down across the board. But conservative spending by businesses is exacerbating the problem in some regions, while demand is actually flat-to-up in North America and Asia, reflecting uneven economic recoveries.”