Orbitel launches Voip service

Colombian long distance operator Orbitel has launched full telephony services using voice over IP (Voip) technology, the first local telco to offer the service to the public in general, the company said in a statement. The Telefonía Virtual service allows local and long distance calls, as well as calls to mobile lines, payable in postpaid or prepaid modes. Customers must have PC, headset hardware and internet connections, which restricts the service mainly to corporate customers given the low penetration of residential PCs in Colombia. Orbitel has been considering Voip service for a long time and it is not clear why it has taken so long to finally implement it, according to telecoms analyst Carlos Rodriguez at US consultancy Pyramid Research. Since a new telecoms law in Colombia would most likely include liberalization of the long distance market and rules for Voip service, the three authorized long distance operators are under pressure to be the first to launch it and gain an understanding of the technology, Rodríguez told BNamericas. Telecom and ETB are the other authorized operators. Corporate communications providers already offer Voip services, but only for their customers' internal requirements. Regular long distance revenues will be cannibalized, but that will be more than offset by the reduction in operating costs that Voip permits, Rodríguez added. Orbitel expects the service to prove particularly attractive to small and mid-sized enterprises (SMEs) looking to cut their communications costs.