Is VoIP Killing Big Telecom?

Last week's Sprint Nextel patent infringement suit against VoIP providers Vonage and Voiceglo make one thing clear: VoIP is killing off Big Telecom. The courts are always the last refuge of a dying industry. VoIP challenges telecom providers as well as wireless companies and cable companies --- virtually anyone who still thinks that providing dialtone is a good business plan.

Making money off normal phone service is a thing of the past. IP telephony is less expensive and offers more features than normal phone service, both for consumers and corporations.

Sprint Nextel is trodding a well-worn path in resorting to the courts to try and save its business. Rather than fighting upstarts by innovating or offering better services, it's hoping its lawyers can bully them into submission, or maybe bleed them to death in a lengthy lawsuit.

Unless the courts ally themselves with Big Telecom, the tactic won't work. VoIP is here to stay, as are clever competitors like Vonage. As long as companies like Sprint Nextel believe the way to compete is through the courts, the handwriting is on the wall --- they're a thing of the past.