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.
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Trouble on the horizon for VOIP?
by
Mark Evans
on Sat 19 Mar 2005 08:23 AM EST | Permanent Link
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