Wednesday, January 24, 2007

SIP Trunking Help for Independent ISPs?


We never cease to be amazed at the way lots of specialized providers are able to make a living in a telecom world dominated by giants. Consider ISPs, operating in a tough business by almost anybody's estimation. Broadband Internet access offers less margin than the dial-up business broadband is replacing. And while wireless access is an option for lots of rural ISPs, there's typically less opportunity in urbanized areas, simply because the telco and cable providers do a pretty good job of providing "commodity" access.

And then there's VoIP, which many ISPs really don't want to undertake. They often don't want to become voice providers in their own right. They typically don't want to become channels for sales and installation of premises phone systems. And they typically don't want to become LAN specialists. But they do know IP-based access services. And many serve at least some business customers, so they understand special access (T1) services.

So what might be interesting is for some provider of SIP trunking services, with a national footprint and the right back office systems, to create a service allowing ISPs to sell SIP trunks just like they sell T1 connections. That way, ISPs could insert themselves into the VoIP value and revenue chain, but without becoming voice providers in their own right, becoming interconnect companies or system integrators. Somebody will figure out a way to do this, and independent ISPs then will have a VoIP value chain play, and a much more lucrative way to play in broadband access, while making some money at it.

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