Margins in Consumer Telephony
By Tim Cook on Feb 21, 2008
Here is a little observation on telephone margins that is dear to my heart. Below is a list of rates (in US dollars per minute, taxes and other fees not shown) for various methods of calling from the US to a land-line in Australia. The last four options use VoIP.
|Source||Carrier||Add-on Plan||Add-on $/month||Rate|
|Land-line||AT&T||none – Peak||-||$4.00|
|Land-line||AT&T||none – Off-peak||-||$2.76|
|Land-line||AT&T||Worldwide Value Calling||$5.00||$0.09|
As you may see, there is a 27000% range in these numbers. Even with that one carrier there is a 100x range. Plenty of opportunity for profit.
Hopefully it is useful to be aware there can be some very steep rates for ex-pat Aussies to call home if they are away from their preferred carrier.
I have been quite satisfied with CallWithUs, if anyone is interested. They even have a call-back feature if I want to call from my mobile.
While I'm on the topic, I should also mention this helpful message I got from my wireless (mobile) provider (although they are no longer my provider):
When you're on the go and don't have the info you need, AT&T 411 is here to help. Whether you're searching for a business or residence - dial 4-1-1 to get quick access to phone numbers and addresses. Plus, with AT&T 411 you can find movie times, driving directions and more. And it's just $1.79 per call plus standard airtime charges.\*
Thanks for the reminder - I will be vigilant to avoid that $1.79 charge, and stick to 1-800-FREE411...