Verizon launches consumer VoIP

Verizon Communications today launched its much-anticipated consumer VoIP service, becoming the first RBOC to offer an alternative to its traditional PSTN voice lines. But the carrier isn’t giving up on analog voice entirely; in fact, it’s positioning its new VoIP product as an alternative voice line to its standard dial-tone service, requiring its DSL customers to buy PSTN voice along with the new VoIP service.

While many customers may be put off by the idea of buying two separate phone services from their local phone company, Verizon officials said they believe the service will still be very competitive in the marketplace. With bundling discounts, the two voice services and DSL will still be priced lower than the usual combination of cable modem and VoIP, as well as giving customers the advantage of a more reliable, higher quality analog line, said Bob Ingalls, president of Verizon Retail Markets Group.

“Realistically we believe that these are a set of features that will complement customers’ traditional phone lines,” Ingalls said. “The biggest thing for us is to offer an alternative to customers who have left us. We think that this is a big win-back offer.”

Verizon’s initial launch will be the largest in the industry. It will sell an Internet SIP-based service in 139 markets in 33 states, many of them outside of Verizon’s territory. It will charge $40 a month for the standalone service, called VoiceWing, which includes unlimited local and long-distance calling as well as the usual assortment of VoIP enhanced features. The service is discounted, however, for in-territory customers who buy bundles.

Verizon has also added a new feature to the mix, though. Leveraging its sizable area code footprint, Verizon is allowing its customers to designate alternate phone numbers that ring that same voice line. Friends or relatives outside of a VoiceWing customer’s traditional calling area can call an alternate number with their own local area code to avoid long-distance charges.

In addition to the consumer service, Verizon is planning a launch of a network-based managed service for small businesses and enterprises, following the lead of fellow incumbents Bell Canada and Qwest, both of whom announced their managed VoIP portfolios last month.

Verizon plans to gear its marketing at its in-territory customers, though the standalone service will be available in dozens of out-of-territory markets. At first, Verizon will launch the service softly, selling it through Internet promotions, but the company does expect to begin a mass-market campaign in the future once it has an established customer base.

“The push will be there,” Ingalls said. “It’s coming—just not tomorrow.”