A buzzword in the cable/ilec world is IPTV, a plan to deliver TV over IP. Microsoft and several other companies have built IPTV offerings, to give phone and cable companies what they like to call a "triple play" (voice, video and data) and be the one-stop communications company. ...I'm at the pulver.com Von conference where people are pushing this, notably the BellSouth exec who just spoke. But they've got it wrong. We don't need IPTV. We want TVoIP or perhaps more accurately Vid-o-IP.
In this article, published in the Federal Communications Law Journal (FCLJ), the authors (Reed E. Hundt and Gregory L. Rosston) have proposed sweeping changes to the current telecommunications regulatory regime. With impending reform in telecommunications laws, the authors argue that an important first step is the creation of a bipartisan, independent commission to examine and recommend implementation of more market-oriented communications policy. The following excerpt from the article looks into service competition with respect to VoIP...
Is the United States in full retreat from internationally recognized regulatory best practice? Or is it instead headed toward some different destination -- "dancing to the beat of a different drummer"? Where is this likely to lead? The following is an introduction to a paper, published by IDATE, from J. Scott Marcus, a Senior Consultant for WIK-Consult GmbH: "...What has radically changed is telecoms regulatory practice in the United States. The U.S., in a long series of regulatory decisions, has largely abandoned its long-standing regulatory principles and moved in an entirely new direction."
As I keep pointing out -- there is indeed a viable alternative of a real marketplace not a fake one. Today's system is a fake because it depends on capturing the value of the application - communications - in the transport and that is no longer possible because with the Internet the value is created OUTSIDE the network. One example of the collateral damage caused by today's approach is the utter lack of simple wireless connectivity. Another is that we have redundant capital intensive bit paths whose only purpose is to contain bits within billing paths.
On the one hand, the big telcos are chanting the mantram, "We shall not block, impair or degrade any content, service or application." On the other hand, they're saying, "There's no problem. We don't need a law until there's a problem." Well, now. Mitch Shapiro over at IP & Democracy, points to Russell Shaw's post that says: "I have been noticing a growing number of posts in which many Vonage users and Vonage Forum Members have been complaining about the quality of Vonage calls over Comcast broadband connections..."
Ahh, so the telecom incumbents have come up with a "new" idea for the Internet -- usage-based pricing. That's right, more usage (for things like VOIP and video especially) means more costs to operate the network, so users should pay by the bit, or some similar metric. It's all so logical! But wait a minute. I thought what sparked the consumer Internet revolution was the fact that ISPs didn't charge by the minute, but offered flat-rate monthly fees. And what catalyzed the boom in cellular usage here in the US was the shift from heavily usage-based pricing to the largely flat rates we see today...
If there is one word in the telecommunications that has suffered from over-abuse for many years now, it's convergence. The term has been liberally applied to each successive generation of communications technology for their supposed ability to solve a myriad of service delivery problems within a single unifying converged carriage and service delivery solution. Unfortunately, the underlying reality has always been markedly different from these wondrous promises, and we continue to see an industry that deploys a plethora of service delivery platforms and an equally diverse collection of associated switching and service delivery technologies. One can't help but wonder at the collective gullibility of an industry that continues to herald the convergent attributes of each new generation of communications technology, while at the same time being forced to admit that previous convergent promises have never been realized.
I'm continually amazed by the amount of FUD being spread with regard to VoIP security threats. People...the sky is not falling. VoIP isn't e-mail. It isn't implemented like e-mail, it won't be implemented like e-mail (maybe "it shouldn't be implemented like e-mail" is a more appropriate statement). Following best security practices will ensure at least a level of security equivalent to current TDM systems. Best FUD I've heard this week: VoIP is insecure because you can simply put a bridge on an ethernet line and capture a stream. Hey, has anyone ever heard of alligator clips?
Om has burnt the midnight oil analyzing Vonage's S-1 filing, coming to the conclusion that, while churn may not be as ugly as people thought, it's still cause for concern, and apparently intensifying. His point at the end about definitions is particularly good, as excluding cancellations in the first 30-days is undoubtedly flattering to the numbers. The net present value of Vonage's lifetime customer revenues is an issue which VoIP-watchers have long speculated about with trepidation -- what if marketing spending, churn, and price competition combined to form a toxic soup which fatally poisoned the economic proposition for access-independent VoIP?
Despite rather rapid growth in broadband access, the U.S. is falling further and further behind other countries -- we're now ranked #16 in the world. What's slowing the U.S. down? Two threads dominate U.S. broadband policy debate today. The first focuses on traditional telecom regulation -- reciprocal compensation, universal service, e911, and CALEA (wiretap capabilities). The second focuses on "Internet freedoms," i.e., guarantees that your broadband access provider won't block or inhibit specific applications like VoIP.