Clearly, the message that the real power of VOIP is compelling features rather than low prices is not resonating with service providers. As Om Malik pointed out, Verizon has launched a $19.95 package that provides 500 minutes of local and domestic LD calling. It will only be a matter of time before Vonage and CallVantage counter with their own price discounts. At some point, these guys are going to wake up and "gee, how come there is no money in this low-margin business?". If they were just a little smarter and less concerned about market share, Verizon et al would realize you can probably charge a premium price for service with compelling features. It seems crazy to offer a better product but charge less for it.

For all of you non-believers who thought my posting on a Cisco-Nortel marriage was an April Food's joke, perhaps it's time to give it some more thought. Cisco CEO John Chambers said yesterday he is still interesting in a partnership with Nortel. "I believe it would be in Nortel's interest and Cisco's interest to partner together," he said. The idea of a "partnership" seems much more plausible today than two months ago after Nortel hired two ex-Cisco senior executives: Gary Daichendt and Gary Kunis. It must be a whole lot easier now to make a deal, particularly since Daichendt works close to Cisco headquarters in Silicon Valley. Closer ties between Nortel and Cisco, which could include Cisco acquiring Nortel, should not be discounted given the carrier market is consolidating and the emergence of low-cost equipment makers in China. It may be a matter of strategic necessity for the major equipment suppliers to join forces to stay competitive. Can you say Nortel-Cisco or Alcatel-Lucent or Nokia-Ericsson?
Speaking of North American carriers, Infonetics Research expects capital spending will climb a modest 5% to US$61 billion this year.

Although I can't take much credit for this idea (Robert Thompson, who writes one of Canada's best golf blogs, is the source), I believe there is a huge opportunity for pay-as-you-go television. The idea stems from the usefulness of Torrent sites such as Torrrentspy.com where you can download television shows you may have missed. I'm a huge fan of Deadwood but due to technical problems - my Rogers PVR has mysteriously stopped functioning - I've missed the last two shows. But with Torrentspy, that's no longer a problem. Sure, it can take anywhere from a few hours to more than a day sometimes to download but it's well worth any aggravation. If the television industry is smart - and doesn't follow the legal-obsessed leads of the music and movies businesses - they will introduce a service where you can legally and easily download television shows. Let's say HBO, for example, offers The Sopranos or Deadwood for $2 or $3 an episode. If it's a high-quality, quick download you can keep indefinitely, I'd be happy to sign up for on a pay-as-you-go or subscription basis. Do I think the television industry will be savvy enough to recognize the opportunity? Probably not, but this is one good idea whose time has come.