VOIP to local or STD is typically free and VOIP to overseas is typically a few cents per minute.
Mobile call rates to these lines are in the order of 30-50c per minute. And if you have a plan that is well and good bu you can not spend too much time on the mobile as you will quickly exceed the plan and start paying that 60c PM.
If you have a family you will very soon realise the benefit of VOIP over mobiles. Every home likes a landline whether it be VOIP or traditional.
Look at Mynetfone (MNF), as a VOIP company they have just announced that they are the first ever VOIP company in Australia to record a profit. They have only been in operation since May 2006.
Some companies know how to make a profit in the VOIP market but your observations on Freshtel are correct however this is related to shocking out of touch with reality management sitting on a lrge amoutn of cash and NOT the absence of a bouant and potentially profitable local retail VOIP market.
Engin is another VOIP company with a lot to answer for, what the hell have they been doing to continue to lose $12M every year?
There would be a few companies out there doing ok out of VOIP I suspect. I reckon iiNet is probably doing ok and quite a few of the larger business line providors such as Macquarie Telecom.
I would not be holding FRE at this stage, it surely is heading under 1c very soon. there is simply nothing that can or will help it at this point in time that I can see.
FSG Price at posting:
2.1¢ Sentiment: Sell Disclosure: Not Held