Cable Ops Look to wVoIP FON HOME

Cable Ops Look to wVoIP

On a day when a family member bought FON, it seems appropriate to pull up a link to an old article about VoIP. The article reported a spring survey by In-Stat that predicts 12% of mobile subscribers will be "cellular/WLAN" subscribers by 2009!

Although, one has to be careful when investing because of projected growth, we see a bright future for wVoIP. The thing that is exciting is that one company has something that others don't.

Warren Buffett is famous for understanding that new technology benefits only the consumer if all businesses adapt the technology. Companies that spend billions on the latest manufacturing technology may do well for a while but if the same technology is purchased by competitors then the companies make no more than before--they simply efficiently manufacture more goods but then sell them at a lower price. If they flood the market with goods, they end up losing money.

SBC, BLS and VZ all have the "advantage" of owning land lines, high speed internet lines and cell networks. FON is a cell phone company. Companies like COMCAST and TWX have the very expensive option of buying or starting a cell phone network or making a business deal with someone such as FON.

Members of my family own NXTL. NXTL and FON will vote this week to merge the companies. FON will then be in a good position to negotiate deals with cable TV companies.

It is estimated that "combo" phones will add 15 to 35% to the revenues of cell companies. The new combo phones will be used more and more as internet access devices. The cell companies may also be able to get a small fee each time a song or other media is down-loaded.

FON has a solid future ahead.

BUY THE BULL!