What does it take to run a successful VoIP services company? According to Report Linker, "the biggest VoIP providers are ostensibly run-of-the-mill telecom companies. This means smaller providers must innovate and take the role of pioneers whose marketing strategy doesn't rely only on offering the lowest price, since that's a game they can't win."

Lowest price is about scale. And as we have seen, just getting to 10K customers has taken most providers a long time (like 6-10 years). So lowest price - and the accompanying we-are-going-to-save-you-money speech - just won't cut it today. It isn't about revenue. It's about margin and profit.

A&P Grocery chain filed for BK today. It has been around 150 years. It ran on 2% return since 1998. It had bonds out there paying 8%. That won't work.

You would expect a 150 year old to know that. Apparently not. But they aren't alone. Many telecom/ITSP companies just want to book revenue and subscribers. That's like counting Facebook fans. What does it get you?

Some of your newer ITSP companies are doing unique things.

Alteva is betting on Microsoft with its Hosted OCS/Linc/Sharepoint/Exchange offering. It is so betting on that Hosted UC type offering that Alteva is wholoesaling that option to other ITSP's. Alteva thinks video will be disruptive, especially what comes out of the MS LINC integration. At the same time, Alteva is also betting on Broadsoft Hosted PBX and software integration. "Apps are stickier" is what Alteva CIO William Bumbernick told me during an interview. He also told me about some big college wins of 22K and 65k seats - without naming the colleges. The bonus was that these were agent sales, which ties in with Bumbernick stating that the ideal agent had bigger customers/connections. Hosted UC isn't for the small business, which is why they target more than 100 seats.

Hosted UC, especially video, needs more bandwidth. (See latest FCC report about broadband speeds.) Companies now looking for Hosted UC are medium sized according to AMI-Partners. Likely that means they have a CIO-type person who can roadmap the integration required for Unified Communications.

In other sectors of VoIP, we have Google Voice testing Call Recording. Sure, it has limitations, but then Google Voice has it's own impediments for many business. But Call Recording that is integrated into the Hosted VoIP offering, like PBX-Change offers through its CTI equipment, is what businesses are looking for. Plus it is that feature that becomes advantageous - and sticky.

Leasing is another advantage. Cisco has its program where it is helping ITSP's that use all Cisco products. (And Cisco Capital is telling VAR's that this is the new normal.) PAETEC and Tele-Pacific are CLEC's touting their own leasing programs.

Other areas of VoIP that can lead to a market advantage are zero-touch provisioning that Cbeyond and IBM are working on; translation service that Telcentris is rolling out; and SMS Integration (that's text integration), so your inbox looks more like your smartphone inbox, is something Telcentris is also working on.

What else are buyers looking for?

Basically, integration and simplicity. By that I mean, Google Apps integrated with Salesforce and other apps that the user needs.

Security. McDonald's customer data was hacked this month. Customers expect that data will be secure - until it isn't. That could be the cloud over cloud -- How reliable and secure is that Cloud Provider?

The one thing that will be a liability for ITSP's and VoIP Providers: not owning the network. We are knee deep in the Net Neutrality debate and it doesn't look good. Plus the Duopoly has stated that if the CLEC's don't like the pricing deal: Hey, go build your own network then!

It's more than just the pricing. Without owning the network, providers have to pay extra for quality of service. That raises the rate or takes away from margin. We'll see how this plays out, because unless the ITSP is integrated into the business processes of its customers to the point that the ITSP is a technology partner, pricing will be a factor - and network operators will win more deals, albeit with thinner offerings.

To win against cablecos who are fast becoming very large providers of digital VoIP, customer service and integration with marketplace advantageous features will be required.

12 Things to do at the End of the Year

1. Review 2010 goals and results.
2. Pat yourself on the back.
3. Thank an employee.
4. Thank a customer.
5. Talk to your Top 5 clients.
6. Get a testimonial.
7. Give a referral.
8. Write a recommendation for someone on LinkedIn.
9. Take some pictures to record where you are now.
10. Stretch yourself for 2011.
11. Create your Goals for 2011.
12. Learn something new in 2011

Broadband deployment numbers will fall. Why? The FCC has re-defined broadband as 4MB x 1MB and most DSL and 2.5G/3G do not provide that kind of real bandwidth. In the FCC report titled "Internet Access Services: Status as of December 31, 2009," 68% of connections in the US advertised as "broadband" can't really be considered as such because they fall below the agency's most recent minimum requirements." Oops!

TechSpot notes that 'over 90 million people in the country are using a substandard broadband service. To make matters worse, 58 percent of connections don't even reach downstream speeds above 3Mbps." BTW, cable leads the way with 70% of the high-speed bandwidth market (over 3MB). TechSpot goes on to state that this report reflects what consumer Purchased, not what was available. Much of that has to do with bundled packages and pricing, not just availability.

When you consider that faster speeds mean more usage - in other words, if I am buying faster bandwidth, I am going to use it - the Duopoly doesn't want to become a dumb pipe. Check out these bundles: triple play is $100; TV+Internet is $95; and TV+Phone is $85. I can't even find an Internet only plan. The Duopoly has a minimum spend per household -- and they don't care how you spend it.

That doesn't bode well for cord cutters or economically distressed households because there will be a minimum spend.

It used to be that the marketing message for the upgrade from dial-up to DSL was so you could do it faster (save time). Now that message is gone, because the amount of time consumers spend online is increasing. That results in more bandwidth usage - especially is video is growing. That means that network operators - the Duopoly - has to keep upgrading the network to meet demand. Or not. And just say Too Bad! It's better than the other provoider. What are you gonna do? Build your own? If you do, we will sue you and delay if for a couple of years. You consumers are pests. Just give us our money. Oh, and here comes another rate hike. HA! The C-suite wants a raise.