April 09, 2007
Study: VoIP Too Complicated for Users

By Leo Blanco
TMCnet Contributing Editor

A study conducted by Forrester titled "The VoIP Customer Experience: Work in Progress" concluded that pure VoIP remains very complicated for the mass market. VoIP vendors such as Skype, Google, Yahoo, ICQ, and Microsoft (News - Alert) must develop easy-to-use, user-friendly services to satisfy the mainstream customers.
 
Value, trust/security, presentation, and navigation are the key problems identified by this new study. There is a need to properly categorize menu items to avoid baffling customers with technical jargon, the study said.
 
The study found that Yahoo! holds the record for best usability. Major improvements in set-up, installation, and search functions are needed to make VoIP services more user-friendly for mainstream customers.
 
Offering a low-cost alternative to high-priced services from telcos, VoIP has a clear competitive cost advantage, the study said. However, the technology is currently positioned only for tech savvy customers while grappling for significant share in the mainstream market.
 
According to the study, only 8 percent of European Internet users familiar with VoIP actually tried this service. This small percentage is comprised most of highly educated, tech savvy males looking for newest and coolest technology. Of this group, only 4 percent opted to use VoIP for their private calls and 3 percent bailed out.
 
Emerging VoIp vendors like Jajah, Hullo, Gizmo Project, and SightSpeed (News - Alert) have realized the need to provide a simple solution to grab significant share in the mainstream market, the study found.
 
In response, telcos and cable operators have resorted to bundling services. Companies like Orange and British Telecom are now offering triple play packages at a discounted rate for the combination of VoIP, broadband, and digital TV.
 
Leo Blanco is a contributing writer for TMCnet. To see more of his articles, please visit his columnist page.
 
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