Voice Over IP and PLDT

Voice over IP services are now being marketed by PLDT, a major telecom company in the Philippines. But it's not your usual hook your computer to the internet-type of VoIP.

PLDT is marketing low-cost international long distance phone cards, which is great considering that only a tiny percentage of the Philippine population has access to computers.

For cellphone users, an international long distance call costs around US$0.40 per minute. With the PLDT budget card, the price goes down to 18 cents.

If you were to avail of VoIP services via your computer (plus a P2,500/month internet connection), you'll spend between US$0.10 and US$0.20 per minute.

Simple Break-Even Analysis

Should you go for PLDT's $.18/min budget card or go with another local VoIP service provider? If the service provider charges US$0.15/min, go with them if you will make at least 1,488 minutes of overseas calls per month. If your consumption is less than that, go with the PLDT budget card.

(This assumes PhP56 = US$1)

[ First posted on 07/23/2004 by Manuel Viloria ]