As someone who enthusiastically waves the flag for VOIP, I'm troubled by Om Malik's posting on whether the FCC will let ILECs and CLECs charge access fees to VOIP service providers such as Vonage. These fees would be a major setback for VOIP because it will force many independent providers, particularly smaller, under-financed ones, out of the market and, in the process, kill a whole generation of innovators. Of course, the carriers would be happy because their telephony busineses are under siege and they argue rivals such as Vonage are getting a free ride on their networks. For regulators such as the FCC and Canada's CRTC, they have a tough job respecting the investments made by ILECs and CLECs while encouraging competition. I'm all for competition because that's how technology and markets move forward.
An even more troubling issue is how large companies are attempting to change the dynamics of the Internet by making it more difficult for new players to deliver services. Whether it's packet prioritization or accesss fees, the Internet is appears to be becoming less free and more corporate. Look at what Vonage is battling as some broadband service providers try to push its voice packets down the food chain. The folks at IP Inferno talk to this issue when it comes to new channels trying to get into the IP-TV world. IP Inferno argues digital television players will struggle because cablecos will prioritize their consumer broadband and VOIP services.
For a more sinister look at how ISPs are quietly going to undermine independent VOIP service providers, Robert Cringely has some interesting insight into how the rules will be bent to avoid FCC scorn. Looks like Vonage CEO Jeff Citron will have some lobbying to do in Washington.

Well, I guess Nortel must define "after the markets close" as sometime before midnight given the PR-challenged company finally issued its Q3 results late last night. Without belaboring the point, the "earlier than expected" release of its Q3s turned out to be yet another public relations/investor relations setback as people waited for the numbers to come out before they could head home for the weekend. The company's puzzling inability to publish the Q3s, which had been promised in a press release early yesterday morning, did nothing to score points with the investment community.
Conspiracy theorists, who may have thought Nortel was trying to hide something, will be disappointed - although the company was light on revenue while gross margins fell to 36%, compared with earlier estimates of 37%.
Nortel's historical financial performance - for what it matters - have been buffeted by its accounting scandal, which has distracted senior management, and tough market conditions in the telecom equipment market. Carriers, cablecos and corporate customers continue to be pragmatic about spending while return on investment (ROI) remains a paramount consideration. It is a challenging selling environment for everyone - let alone a company struggling to right itself internally. On a positive note, Gary Daichendt, Nortel's new president and chief operating officer, apparently impressed employees during town hall meetings, and insuated job cuts are not part of the strategic future. One wonders, however, where Daichendt is going to squeeze out more savings so Nortel can reduce its operating expenses.