"What we are doing is taking advantage of the broadband Internet to provide basically unlimited free calls to anyone at a higher voice quality than they can with the phone lines"
About this Quote
There is a familiar Silicon Valley magic trick at work here: take something people already pay for, reroute it through a new pipe, and rebrand the savings as liberation. Zennstrom frames broadband not as infrastructure but as an opportunity to arbitrage an old monopoly. The phrase "taking advantage" is telling. It’s candid, almost mischievous, about exploiting a historical mismatch: phone networks priced like scarcity while the internet increasingly behaved like abundance.
The intent is half technical pitch, half cultural provocation. "Basically unlimited free calls" isn’t just a feature; it’s a dare aimed at incumbents who built business models on per-minute metering and geographic boundaries. The subtext is that the telecom industry’s rules were never laws of nature, just billing choices enforced by control of last-mile networks. Put voice on IP and the mystique dissolves: calls become packets, distance becomes irrelevant, and pricing power leaks away.
Then comes the strategic sweetener: "higher voice quality". Free alone suggests cheapness; better-than-phone quality sells legitimacy. It signals a shift from frugality to superiority, positioning internet calling as not merely disruptive but aspirational. This is the early-2000s moment when broadband penetration, improved compression codecs, and consumer comfort with always-on connections made it plausible to treat communication as software.
Zennstrom’s line also foreshadows a larger pattern: once voice is just another internet service, the real contest moves to platforms, network effects, and who gets to own the relationships layered on top of "free."
The intent is half technical pitch, half cultural provocation. "Basically unlimited free calls" isn’t just a feature; it’s a dare aimed at incumbents who built business models on per-minute metering and geographic boundaries. The subtext is that the telecom industry’s rules were never laws of nature, just billing choices enforced by control of last-mile networks. Put voice on IP and the mystique dissolves: calls become packets, distance becomes irrelevant, and pricing power leaks away.
Then comes the strategic sweetener: "higher voice quality". Free alone suggests cheapness; better-than-phone quality sells legitimacy. It signals a shift from frugality to superiority, positioning internet calling as not merely disruptive but aspirational. This is the early-2000s moment when broadband penetration, improved compression codecs, and consumer comfort with always-on connections made it plausible to treat communication as software.
Zennstrom’s line also foreshadows a larger pattern: once voice is just another internet service, the real contest moves to platforms, network effects, and who gets to own the relationships layered on top of "free."
Quote Details
| Topic | Internet |
|---|
More Quotes by Niklas
Add to List
