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Central Oregon business owners more prone to adopt 'VoIP' technology(Bulletin, The (Bend, OR) (KRT) Via Thomson Dialog NewsEdge) Jun. 25--Doug Ritchie and Alison Miner, both Bend residents, have been using Internet phone service for months and they like it. But neither could name anyone they know in Central Oregon using the service. Therein lies the question: With at least three companies launching similar services in Central Oregon since January, is the local demand large enough to support the new crowd of Internet phone service providers? "I think they might have a really hard time until they find a way to educate people better," said Miner, who owns of a small clothing business and has been using Internet phone service since last November. "I don't think people appreciate the benefits (of VoIP)." Internet phone service is also known as Voice-over-Internet Protocol, or VoIP. The technology uses broadband Internet connections, such as cable or digital subscriber lines, also known as DSL, instead of conventional phone lines to transmit voice signals between telephones. VoIP tends to be cheaper than conventional phone lines, although some contend it isn't as reliable. The latest VoIP provider in Central Oregon is Kirkland, Wash.-based Clearwire Corp., which launched Internet phone service this month in Bend, Redmond, Sisters, Madras and Prineville. In January, local cable provider BendBroadband and national VoIP startup Vonage Holdings Corp. launched Internet phone service. Amy Tykeson, BendBroadband's president and CEO, isn't sure the market is big enough for all the competing providers. "I think time will tell," Tykeson said. "Bend is the 196th largest media market (according to Nielsen Media Research) in the country. So we're growing, but we're still not a huge community. Consumers will decide which companies survive." She added that she's pleased with the reception for BendBroadband's phone service since its launch, saying it's in line with company projections. She would not release numbers. In response to pressure from competitors, Denver's Qwest Communications International Inc., Central Oregon's primary phone service provider, also offers VoIP in the region. "(Central Oregon) is a very important market for us," said Qwest spokesman Bob Gravely. "It's one of the fastest-growing markets in our region, and that's where our competition is. There's nothing we can do about it but put together a package of services that people want." For Bend resident Ritchie, an executive with a medical information technology firm, Internet phone service is an easy choice once people learn more about it. Currently signed up for both VoIP and conventional phone lines, Ritchie is contemplating going solely with Internet phone service when he moves to a new house next month. "It's performing very well," he said. But both Ritchie and fellow VoIP user Miner said they've encountered some problems, ranging from dropped calls to inconsistent fax transmissions. Services provided by companies that don't own their network are more prone to such disturbances, according to Tyksen. Therefore, when Internet traffic increases, the phone signals could be dropped. With VoIP providers who also own their networks -- BendBroadband, Clearwire and Qwest -- the phone service is likely guaranteed a certain amount of space on the network at all times. Miner said the infrequent disturbances aren't enough for her to switch back to conventional phone lines. "(Dropped calls) still happen, but it's very sporadic," she said. "It happens maybe one out of 100 times, so it isn't significant. And I'm paying half of what I used to pay. So why would I switch?" Ritchie, while equally praising of his VoIP service, said it's unlikely there's enough demand to support all the providers moving into the area. "I don't think people generally want to deal with it," he said. "Most people think it requires a lot of technical support, which really isn't true. But most people have limited technical acumen, and they may be weary of the technical requirements." Bend-based communications provider United Communications Inc., or UNICOM, is focusing on the business sector because the clients tend to be more tech-savvy and more readily embrace the cost advantages. "I think there's a huge demand (for VoIP) on the business side," said Molly Renner, UNICOM's director of marketing. "That's why we're there. There hasn't been a lot of demand from the residential side, so we tap into a lot of the resources of the local phone company to provide that service." For Redmond-based accounting firm Dahlen & Boschma CPAs LLP, VoIP has enabled it to connect a worker in Sweet Home, Ore., to the company's phone system. "It's totally transparent to the clients," said Henry Boschma, partner at the firm. "It really opens up the possibilities, especially if you lack office space." For residential users who are less comfortable with new technology, however, it is likely to remain an uphill battle for VoIP providers, said VoIP user Miner. "I think most people would switch if they knew more about it," she said. "It's just a challenge to educate the public." |