It is interesting to read a story in TechWeb News about how Skype is tyring to sell itself to the FCC as a "enhancement" to traditional phone service rather than a replacement. By selling itself in this manner, Skype hopes to avoid from having to comply with the FCC rules that VOIP service providers offer access to 911. "We're an an enhancement like fax," Skype spokeswoman Kelly Larabee told TechWeb News. "You should know that Skype is not an emergency service."
The flaw in Skype's argument is as it offers premium based services such as SkypeIn and SkypeOut, Skype starts to look less like a rebel P2P play, and more like a fast-growing VOIP service provider. Given that Skype now offers U.S. phone numbers through SkypeIn and SkypeOut, it appears the company will have a big challenge convincing the FCC that it shouldn't comply with the 911 rules. If Skype is reluctant to get into the 911 fray, it will be interesting to see if it offers SkypeIn and SkypeOut in Canada given the CRTC introduced rules last month making 911 service mandatory for all VOIP companies.
At the end of the day, Skype may not want to incur the cost of offering 911 service but it may have no choice given the regulatory environment.

For all the consolidation among U.S. carriers, there has been no action among equipment makers even though competition is fierce and margins are being squeezed as multiple players fight for new deals. During an apperance at Lethman Brothers Wireless and Wireline Conference, Nortel CEO Bill Owens was bluntly asked if the company shouldn't put itself up for sale - given the fact business is so tough suppliers like Nortel have to heavily subsidize new customers (BSNL in India) just to win access to wireless customers spending $6 a month. While conceding consolidation is an industry necessity, he said Nortel's well positioned so selling out is not an attractive option. "Our eyes are wide open about the opportunities. As you can imagine with my background in the military, I am not afraid of strategy of establishing global leadership. I don't think for good of Nortel shareholders, it is the right thing to sell." Given this stance, what does Nortel do? With its financial house in order Nortel can now use stock as currency to make acquisitions. Owens has made it clear Nortel is intent on staying in the enterprise business so perhaps a deal in this area is likely. You wonder whether there's a deal to be in services or security - two of the new strategic areas that have emerged from Nortel since Owens took the helm last year.