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Rapid development of the VoIP industry quickly lead to the increased rivalry in the segment. VoIP providers can no longer survive offering low-quality and limited services. Customers demand more for less.

On a certain stage of business development any VoIP provider is put at a dilemma: try to squeeze the last juices out of the business by offering low-quality services for the competitive price, or constantly improve the quality and range of available services, diminishing the profit margin sometimes even to zero. If previous investments were considerably low, the first method can work, though every next day makes such a scenario less and less attractive. And if you have already invested quite a some into this business, it’s not wise to leave it now, as it is one of the most actively developing IT segments.

As the rivalry between VoIP providers increases, customers benefit from the constantly increasing “quality/price” aspect. To attract new clients and support the loyalty of the existing ones, VoIP providers have to improve the quality and announce new and new additional services, usually provided free of charge.

Of course, in such conditions it is almost impossible for the providers with limited budget to stay profitable and build a competitive client portfolio. Such small VoIP providers either disappear or sell themselves to the large companies.

However, some VoIP providers have not only managed to survive, but are still prospering and increasing their turnover. This is thanks to their smart management that has made right decisions when the business needed them. Those VoIP providers who have successfully re-oriented themselves to some specific niche services, are now quite successful and it looks like they are to stay such for the years to come.