Linked by Thom Holwerda on Fri 16th Dec 2005 14:26 UTC, submitted by Robert Gelb
"I am not a cynic by nature, but years of experience in the IT world have compelled me to make sure that everything passes the smell test. As a result, I can often tell beforehand whether I am hearing marketspeak or the real deal. For instance, 5 minutes after I figured out what Larry Ellison's network computer was, I knew it would never be successful. And so did Larry Ellison, given that Oracle never actually built any of them. So with that in mind, let's revisit the top 10 overhyped, overmarketed, overbsed (if there is such a word) computer industry events of 2005."
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"This guy has no idea why VOIP is interesting. The distance of the call will no longer matter. You can place and receive unlimited calls from your line. You get multiparty calls for free. "
I think he was addressing exactly this issue. At the moment, SBC uses a very simple formula (ok, maybe I simplified it a little too much but it does illustrate the point.) SBC profit = PSTN income + Internet income - network maintenance. Now Do you really think that SBC is going to let their PSTN income drop to 0 and not increase cost elsewhere? Do the math.