Friday, March 18, 2005

ISPs Killing off VOIP?

'These are heady days for Voice-over-IP (VoIP) phone services. From Vonage to Packet8 to Skype and a hundred more besides, several million people around the world are enjoying really cheap phone calls that are carried primarily over the Internet. But that fun may be diminishing soon because the big Internet service providers, which is to say the big telephone and cable TV companies, are about to start taking back that third-party VoIP traffic, leaving Vonage and the others at a distinct disadvantage.

It has always rankled the telephone companies, especially, to be carrying over their Internet backbones the seeds of their own telephonic destruction. Protected from both regulation and most regulatory fees, VoIP phone service providers have been able to easily undercut the long-distance prices of the Regional Bell Operating Companies and still make good profits. The phone companies -- always slow to react -- did not pay much attention at first to these outfits they collectively refer to as "parasites," but now, with several million lost customers, they are paying VERY close attention indeed.'
Source PBS | I, Cringely . Archived Column

4 Comments:

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9:08 PM  
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3:02 AM  

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