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Eventually, he expects, automakers will shift to Internet radio services.
But industry analysts say the phone companies are facing problems that will continue to hasten the shift to Internet calling.
"I think Netflix is a momentum stock; people get nervous around quarters but the fundamental shift to internet TV hasn't stopped," Greenfield says.
Bezeq was privatized in 2005, and then found itself in the turbulent world of legacy communications companies trying to shift to Internet service.
But according to studios, sales for some new-release DVDs are down a jaw-dropping 40percentt, hammered by the recession, a saturated market (on sale now: the complete ninth season of "Murder, She Wrote") and a shift to Internet downloads.
"Intu thought this was a cyclical problem... whereas our point is this is a secular shift to internet shopping, that you have the wrong asset class," said hedge fund manager Crispin Odey, which has a long-term short position in Intu.
Similar(48)
If competition ever creates a significant shift to Internet-based phone service, it could quickly decimate the already precarious economics of the local phone business.
This shift to Internet-based software from so-called client-server based software -- in which some parts of the program are kept on a central server and some on individual computers -- signals a radical shift in the industry, Mr. Conway said.
But, with disruption comes the opportunity for innovation, and there are as many liberating aspects of the shift to internet-distribution of content as there are threats.
They would save the regional Bell companies billions paid to local carriers that some rivals and groups say would be shifted to Internet users.
Meanwhile, the major airlines are emulating the low-cost carriers where they can — shifting to Internet booking and adding fuel surcharges, luggage fees and charges for food and drinks.
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