And the popular dictum goes like this, A country is poor because it is poor. Or the big get bigger, while smaller struggle, this what Peter Svensson wrote in BusinessWeek Online. Is this adage applicable for the VoIP companies? Going by the current VoIP market of US, I find these adages present somewhere in guise.



The companies like Verizon and Cingular are taking full advantage of the market condition because they are big brands who can expand their marketing reach and the convenience of combined home and mobile bills for customers. On the other side, there are strugglers like Sprint, Nextel and T-Mobile USA who hardly make profit in this quarter.



For instance, Sprint, the VoIP Company has reported a 38 fall in the profit during second quarter. Somehow, it has added 708,000 subscribers in the second quarter. It is half the number added at Verizon Wireless or Cingular.



Sprint’s subsidiary Nextel is tumbling in the market. It got no customers in the past year, the Merrill Lynch analyst David Janazzo explained. Even, the existing customers are not satisfied with the Nextel’s voice quality. It is mainly due to inadequate wireless bandwidth in some markets.



Meanwhile, Cingular and Verizon Wireless fully exploit the market condition because of their corporate parents. AT&T Inc has owned the Cingular Wireless. AT&T and BellSouth Corporation are merging. It would another advantage to Cingular. While, Verizon Wireless is owned by Verizon Communications Inc. and Vodafone Group PLC.



There is a spectacular fall in customer’s churn of Cingular. The report says it dropped to 1.7 percent from 1.9 percent during the last quarter. Now, AT$T and BellSouth is expecting a big profit for holding Cingular which has 57.3 million cell-phone customers, a few more than Verizon Wireless. However, Verizon Wireless added 1.8 subscribers during the second quarter. It is high than any other service providers.









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