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VoIP Gets A Big Backer And Another Lawsuit

Ungrounded Lightning writes "Time Warner Cable has announced plans to roll out a VoIP telephone service. I see two implications. First: ISPs providing VoIP phone service have a competitive advantage over third-party VoIP/PSTN providers (such as Vonage), who must ride on top of a separate broadband subscription for the packet transport. This could lead to consolidation of this industry segment in the hands of ISPs. Second: Cable ISPs have an advantage over Telco DSL operations - where a VoIP offering would cannibalize their own POTS and short-range long-distance revenue. This implies rollout on cable providers first, followed by harder times for telcos, long-distance companies, and third parties." chipperdog writes "In this article it is mentioned that the small rural phone companies in North Dakota are filing a complaint against a local VoIP provider, CallSmart. Interesting to see how this one works out, given what happened in Minnesota a few months ago."

169 comments

  1. mixed bag by pbrinich · · Score: 5, Interesting

    I agree that Time Warner (and other, especially cable based ISPs) will have a huge competative advantage over third-party providers. But, in my area TWC is going to be offering VOIP in early next year, but they want to charge 39.95/mo for service that I can get for 25 bucks from vonage and they won't even be offering voice mail initially!

    I think government and telcos need to realized that VOIP can and shouldn't be regulated anymore than any internet-based service. Governments need to find other revenue streams than regulatory fees....just my $.02

    1. Re:mixed bag by swordboy · · Score: 4, Interesting

      that I can get for 25 bucks from vonage

      Actually, you can get UNLIMITED (North America) for $20 from packet8.net. Seriously, Packet8 should subcontract all of the independent geeks out there and offer $25/month service with a $5/month comission to the installer. I recently set up a 4-line packet8 system for a partner's (at my employer) home. It is saving him approximately $700/month over PSTN and I'm wishing that I'd get a piece of that aside from the initial fee that I charged...

      It is only a matter of time before the wireless routers out there start building in SIP/2.4ghz cordless phone functionality. I'll laugh if I ever buy a Linksys or Netgear cordless phone.

      Sigh...

      --

      Life is the leading cause of death in America.
    2. Re:mixed bag by GreyPoopon · · Score: 5, Interesting
      But, in my area TWC is going to be offering VOIP in early next year, but they want to charge 39.95/mo for service that I can get for 25 bucks from vonage and they won't even be offering voice mail initially!

      Interestingly enough, my provider is offering VoIP in a PARTNERSHIP with Vonage for $25/month (500 LD minutes) or $35/month unlimited. Personally, I think this is the way ALL providers should do it -- partner with a third party company.

      --

      GreyPoopon
      --
      Why is it I can write insightful comments but can't come up with a clever signature?

    3. Re:mixed bag by twiddlingbits · · Score: 2

      If my phone was out for days like my Cable and Cable Modem I'd be very pissed and would change providers. As I see it this gives the customer a choice to use one of several options for POTS. In the end what goes over the networks is IP data anyway. X.25 and circuit switches are about gone. How the telco/cable /reseller handles it may affect QOS but for POTS all you really need is a solid 8K bandwidth for the voice. Cable companies who have pulled fiber to the homes have loads of bandwidth to spare and the costs are subsidized by the fees we pay for our cable TV, so prices should be low! I see no reason why my local phone bill should be $35 plus L/D. The phone companies no longer have a monopoly but still want to charge monopoly prices, the entry of the cable companies might put an end to that! I'd still hate to have an AOL phone, even if all my bills came from one company such as Time Warner.

    4. Re:mixed bag by t0ny · · Score: 4, Interesting

      I remember reading about a mobile phone which would auto-switch to 802.11b if it could. Didnt see it released, though, but it was kind of a good idea (Im sure the technical issues probably killed it, since there really shouldnt be wide open 802.11 connections. Use at least 64-bit WAP, people!)

      --

      Manipulate the moderator system! Mod someone as "overrated" today.

    5. Re:mixed bag by Anonymous Coward · · Score: 0

      Let's see: a partner at your employer... and the nick swordboy... You aren't by any chance in the gay porn business, are you?

    6. Re:mixed bag by DOCStoobie · · Score: 1

      yeah ...$20 bucks... plus your broadband connection ... just wait till Cable ISP's get their networks rolling.... They are also testing wireless "hotspots" right of of their cable plant, meaning they could have 100% coverage with hotspots... Also, the comment about cable to be the first to use VOIP, they will be the first to offer it to the public, but, suprise suprise, a very good percentage of long distance is already on IP, as well as may Govt. offices....

    7. Re:mixed bag by JPriest · · Score: 1

      They have a "free" plan where you buy the equipment ($75) and you can call anyone also using the service. Has anyone else tried their service?

      --
      Saying Java is nice because it works on all OS's is like saying that anal sex is nice because it works on all genders.
  2. Cost savings with VoIP by charnov · · Score: 4, Interesting

    My office is looking to go to VoIP since we are in the planning stages of a move. The estimated cost savings is around $6000 per month for less than 150 people. The drawback is we would be ditching our entire phone system (and phones) and purchasing new equipment (we are talking about $60K at least). No decision has been made yet.

    The other added benefit is that I would be responsible for phone traffic, also, in that it would be routed through the normal network. More job security...heh.

    --
    [RIAA] says its concern is artists. That's true, in just the sense that a cattle rancher is concerned about its cattle.
    1. Re:Cost savings with VoIP by Nexx · · Score: 3, Funny

      ROI seems excellent. Now it's all about risk management, isn' t it? :)

    2. Re:Cost savings with VoIP by quantaman · · Score: 4, Funny

      The other added benefit is that I would be responsible for phone traffic, also, in that it would be routed through the normal network. More job security...heh.

      Even better, no more calls during the middle of weekend when the network goes down!

      --
      I stole this Sig
    3. Re:Cost savings with VoIP by Anonymous Coward · · Score: 0

      Where's the -1, Buzzword mod when I need it?

    4. Re:Cost savings with VoIP by Anml4ixoye · · Score: 4, Interesting

      We did a VOiP rollout. We are a 6,000 person local government agency that is in the middle of a rollout. It is great - we are using the phones from Cisco and we have a tremendous ROI.

      Of course, it does help that we have a Gigabit backbone. But I have seen some of our telecom guys walking around with a phone from Cisco that is an IPPhone when in range of a WAP for our network, and a regular cell-phone otherwise. Pretty sweet.

      If anyone wants more info, you can email me at foyc at hillsboroughcounty dot org

    5. Re:Cost savings with VoIP by sahonen · · Score: 1

      So it'll save you $6k/mo, and it'll cost $60k to install. What's the holdup? It'll pay for itself in less than a year, I'd go for it, as long as the protocol is something that'll be around for a while.

      --
      Make me a friend and I'll mod you up
    6. Re:Cost savings with VoIP by brunes69 · · Score: 2

      Well if those estimets are correct then you'd be in the black in under one fiscal year, from then on in you'd be laughing all the way to the bank.

      Any manager who saw those figures and decided to NOT go with VOIP is either a moron, in bed with the telco, or there's some other costs you're not including (support, support personell for the VOIP hardware, etc).

    7. Re:Cost savings with VoIP by doogles · · Score: 4, Informative
      But I have seen some of our telecom guys walking around with a phone from Cisco that is an IPPhone when in range of a WAP for our network, and a regular cell-phone otherwise. Pretty sweet.

      No you didn't.

      The Cisco 7920 Wireless IP Phone does not at this time do anything but 2.4GHz 802.11b. It has no cell phone functionality, although this has been discussed as a possible next-generation product direction (as well as some possible OEM agreements with PDA makers).

      This phone is a pretty solid product, albeit a little light on battery life. This comment is ironic, as the original delays on the product (to the tune of about 10 months) while Cisco worked on the battery life.

      There are two main competitors in the Wireless IP Space:
    8. Re:Cost savings with VoIP by Anml4ixoye · · Score: 1
      The Cisco 7920 Wireless IP Phone does not at this time do anything but 2.4GHz 802.11b

      You may be right about this. They may have said that it is supposed to do that in the future, and I thought they meant now. Though we do spend a *lot* of money on Cisco, so they may have had a beta phone. If I find out more I will post it

    9. Re:Cost savings with VoIP by Lodragandraoidh · · Score: 1

      There is nothing turn-key that will do much more than dialtone. If you want specialized services that are resilient, super scalable, and integrated, you are talking bleeding edge development. Convergence, while inevitable, is not something you can just order up, like so much lobster flown in from Maine on the UPS redball express...

      The guys who do it right will end up on top. I think companies with broadband infrastructure in place will have an advantage; Telcos, LD and Cable companies.

      So, when your website (which also will probably host voicemail and email and [enter some other communications medium here] - and provide a web interface to all of it for your users) is experiencing problems - now you not only have to troubleshoot the network, you also have to be able to troubleshoot your PSTN gateways - and the associated wireline circuits beyond (and believe me - they will be pointing at your equipment 9 times out of 10).

      Engineering the growth of the network will also be a bear; not only will you need to take into account your busy hour call volumes, but also how this translates into bandwidth utilization, disk usage, cpu utilization etc on your network.

      Good luck. Convergence is basically taking an equation and changing a bunch of variables all at once. Troubleshooting will be tricky at best - and a morass at worse from which there is no return...[overdramatization off]

      --

      Lodragan Draoidh
      The more you explain it, the more I don't understand it. - Mark Twain
    10. Re:Cost savings with VoIP by play123 · · Score: 1

      You dont have to ditch the phone system, infact you can still use the phone system with VoIP. Plus you can add backup functionality of PSTN lines as well. just my 2cents :)

  3. Maybe I'm stupid... by Anonymous Coward · · Score: 5, Funny

    But isn't "short-range long-distance revenue" an oxymoron?

    1. Re:Maybe I'm stupid... by Anonymous Coward · · Score: 0

      Maybe using the phrases "inter-LATA" and "intra-LATA" raise the geek quotient enough?

      It's a myth that phone service was "deregulated" when they broke up AT&T. In fact, it's probably more regulated now. The regulations changed, but they didn't go away, and they invented all sorts of interesting new boundaries and layers and definitions for the business.

    2. Re:Maybe I'm stupid... by Wireless+Joe · · Score: 1

      You'd think so, but when it's a long distance call from the south side of Chicago to the North side, that's short-range long-distance. And ridiculous. Almost as ridiculous as having to still dial a "1" to make that call. You'd think the telcos coud get equipment smart enough to know that when I dial 10 digits, it's a long distance call. (OT pet peeve #12993002)

    3. Re:Maybe I'm stupid... by OwnedByTwoCats · · Score: 1

      But dialing ten digits does not make a call long-distance. Dialing 718-xxx-xxxx from the 212 area code is a local call.

      The "1 is a toll call prefix" was used in some places. 1-xxx-xxxx and 1-xxx-xxx-xxxx. It helped people with the surprises on their phone bills. It's been depracated for a while.

      And don't get me started on "local toll" calls.

  4. Brilliant! by Phrack · · Score: 5, Funny

    Second: Cable ISPs have an advantage over Telco DSL operations - where a VoIP offering would cannibalize their own POTS and short-range long-distance revenue.

    So when your cable service is interrupted, you can't call 'em to tell 'em you lost your TV signal! Think of the money they'll save on customer no-service!

    --
    Dump the IRS - http://www.fairtax.org
    1. Re:Brilliant! by sharkey · · Score: 1
      Think of the money they'll save on customer no-service!

      You say that like this "no-service" plan is a future thing.

      --

      --
      "Outlook not so good." That magic 8-ball knows everything! I'll ask about Exchange Server next.
    2. Re:Brilliant! by DOCStoobie · · Score: 1

      Yeah... no kidding ... but, beleive it or not, cable co's spend a bundle to provide backup fiber links and redundant power to avoid such interruptions, at least COX does......

    3. Re:Brilliant! by salesgeek · · Score: 1

      This is a real issue since Telco cusomter service is highly regulated - they have to fix your phone - whereas the Cable Guy is not held to the same standard.

      --
      -- $G
  5. RIAA sound familiar? by Quasar1999 · · Score: 0, Troll

    Is it just me, or is the American business model to stick with a rigid plan, and when that plan becomes obsolete, whine, bitch and complain until the politicians you bought last election will come up with laws that protect your horribly backwards business model and crush any and all innovation in the country.

    --

    ---
    Programming is like sex... Make one mistake and support it the rest of your life.
    1. Re:RIAA sound familiar? by tealover · · Score: 3, Funny

      Yes, I'd like to think that the American business model can be summarized in one paragraph as well.

      --
      -- You see, there would be these conclusions that you could jump to
    2. Re:RIAA sound familiar? by jc42 · · Score: 1

      What's American about that? It sounds like the approach of powerful and entrenched people anywhere, anytime.

      --
      Those who do study history are doomed to stand helplessly by while everyone else repeats it.
    3. Re:RIAA sound familiar? by Anonymous Coward · · Score: 0

      In this case, the business model was forced upon the telcos by the US government back when they broke up AT&T. They invented the system of RBOCs, ILECs, CLECs, long-distance carriers, LATA, not to mention all the fees to support regulations such as universal service, 911 access, as well as all the dependencies they invented when they hacked up Ma Bell.

      Phone companies aren't allowed to innovate, even if they were so inclined. The phone business is extremely heavily regulated.

    4. Re:RIAA sound familiar? by Brian_Ellenberger · · Score: 2, Insightful
      Is it just me, or is the American business model to stick with a rigid plan, and when that plan becomes obsolete, whine, bitch and complain until the politicians you bought last election will come up with laws that protect your horribly backwards business model and crush any and all innovation in the country.

      There are very valid points as to why VOIP have unfair advantages over POTS. IMHO, too many people are jumping on the VOIP bandwagon because it is "new" and because they are the "little guy" fighting against the big evil telephone co.

      But there are serious questions that need answered. What about 911? What about the laws requiring certain reliability and uptime requirements? What about rural areas without highspeed internet? What about all the taxes that are added your phone company's bill and not on the VOIP bill? I'm sure there are other questions as well.

      Don't be one of those dorky protesters who root for the underdog until 10 years later when the VOIP guys are the "big guys" and you start compaining because basic phone and 911 is no longer available in the middle of Mississippi.

      Brian
    5. Re:RIAA sound familiar? by Quasar1999 · · Score: 1

      What about rural areas, you ask? Well, that's easy... let them pay for whatever service they want... I'm sick and tired of paying through the nose for 'rural' access. I live in Canada, and Bell (the monopolistic telco) decides to make me pay $5.95 a month to offset rural costs. I live in a city. WTF? That not withstanding, I was under the impression that all phone rates are then fixed no matter where you are... umm... Halifax residents pay $10 less for the exact same service I get in Southern Ontario. WTF?

      Reliability? Yeah, 911 calls are important... but I've been in a situation where my damned cell phone couldn't make the call (I was way up north), and I pay a damned fee for 911 access on my cellphone by government mandate... and I don't get the damned service guaranteed. So if there is an alternative that is cheaper and about as reliable, I'll take it, and be damned if I let the government put a tax on it, just cuz it's an essential service in their eyes', but then end up doing nothing to actually guarantee it.

      Yeah, I'm bitching, and bitter... and I'm not rooting for the underdog (soon to be the bug guys, as you put it)... I just want alternatives that aren't taxed to shits by people who don't even understand what it does.

      --

      ---
      Programming is like sex... Make one mistake and support it the rest of your life.
    6. Re:RIAA sound familiar? by Anonymous Coward · · Score: 1, Interesting

      You bring up several valid points regarding the cost of phone service. I am an ex-Bell guy, and there are valid reasons for why things are the way they are. Namely, you need to take a historical look at things to see why we are here, and I won't get into this at this time.

      The big issue at this point in time is government regulation. In the U.S., when AT&T was broken up, and in Canada when deregulation took place, there was (and continues to be) a valid concern that Bell would use their dominant position to "lock out" the competition. After all, they already had all the necessary infrastructure in place, and a competitor needed to start from scratch, invest millions of dollars and build a customer base. Hence, we have government keeping their hand in things to make sure everyone plays nice.

      If Bell was given a choice, do you really think they would (voluntarily) offer service in areas where they loose money? Its bad business. However, they are mandated to do just that in exchange for being able to charge higher rates in other areas where the do make money.

      By declaring VOIP free of regulation, it creates unfair competition for the telco's. We want (and expect) phone service everywhere, we want and expect 911 service, and a host of other services from the phone company, yet at the same time a loophole has been opened where a competitor is able to not have to pay to provide these services. In short order, everyone is going to jump on the bandwagon, and there will be no money to support the money loosing things we have come to expect.

      I am not defending the status quo, just trying to point out that we need to look back to see why we are where we are at today. By choosing to not regulate VOIP, then we also need to stop regulating POTS as well to ensure a level playing field for all players. This will have HUGE ramifications in the marketplace.

      Why not regulate VOIP service the same as POTS? How do we know what a person is sending out of their house (data stream), and why charge for sending voice? That being the case, I will send video and text (no voice), and create a new loophole to avoid paying extra.

      For many years, we kept hearing that convergence was coming, and it would offer many new and wonderful things. Well, its here now. The tradeoff is that we must shed some of the things we have come to expect that will "always be there", and take a big step forward into the unknown. It can be (and is) very scary!

    7. Re:RIAA sound familiar? by Anonymous Coward · · Score: 0

      "We want (and expect) phone service everywhere, we want and expect 911 service, and a host of other services from the phone company, yet at the same time a loophole has been opened where a competitor is able to not have to pay to provide these services. In short order, everyone is going to jump on the bandwagon, and there will be no money to support the money loosing things we have come to expect."

      I can see your point but the same could be said for email and faxes displacing letters. So many want VOIP to equal a phone. Personally I don't because frankly I like running my own directory service and controlling my endpoints. So my point is there should be two streams for VOIP. One comparable to and compatible with making and accepting calls to the POTS and another that lets us use VOIP in a free and unregulated manner. If there is blanket regulation over VOIP, what will come next VPN regulations?

    8. Re:RIAA sound familiar? by ErikZ · · Score: 1

      6 Dollars? 6 CANADIAN dollars to get phone service to everyone in Canada? The second largest country in the world?

      That's paying though the nose?

      You're in Canada and you're complaining about taxes? You live in a socialist country!

      --
      Democrats or Republicans. They are both taking us to the same place and they are not afraid of us anymore.
    9. Re:RIAA sound familiar? by ONU+CS+Geek · · Score: 1

      Yeah.

      It's called "Profit by Legislation," and it pisses me off. Anyone's eligible for being entered into that category, however, it's really hard to determine the people who would fit. For starters, the DMCA, CAN-SPAM, that kinda thing.

      Between that and the total erosion of my civil liberties, I'm thinking that maybe the Netherlands are a better place to live ;)

      Ian

      --

      I disable sigs...do you?
  6. Wireless in Local Loop? by andy1307 · · Score: 1

    Is there any technical problem providing a service using Wireless in Local Loop(basically a cordless phone with the base unit at the telco)? They could provide phone service and wireless internet service. Are there any bandwidth restrictions in the US? It seems like a simple concept and i've seen WLL phones in India.

    1. Re:Wireless in Local Loop? by Wesley+Felter · · Score: 1

      Unless I'm really missing something, that's called a cellular phone. Of course you can also run VoIP over wireless broadband, but I don't expect that to catch on until WiMax comes out.

    2. Re:Wireless in Local Loop? by andy1307 · · Score: 3, Informative

      WIth a cell phone, you are automatically "passed on" the next cell when you move. With WLL, you are locked into your service area.

  7. So? Cable is unreliable by pctainto · · Score: 3, Interesting

    Whenever there is a storm, my cable goes out before the power ever does. Cable also tends to go out at random times. Why would I want to change to VOIP when I'm not insured that cable will always be available -- especially since a POTS system is much, much, much more reliable.

    --
    I think my principles are reachin' an all time low
  8. does cable really have an advantage? by bunyip · · Score: 4, Interesting

    I'm not convinced that cable really has an advantage over the phone company. The cable company doesn't get 7*24 at all...

    If it rains, we have an outage.

    If the weather's hot, we have an outage.

    If our cat farts within ten feet of the modem, we have an outage.

    Yes, I like my cable modem for the download speed, but I won't give them my phone service anytime soon. Calling tech support is often an exercise in futility.

    BTW - I have no land line, my wife and I use wireless only. It's not as reliable as a land line, but it's actually cheaper and works pretty damn well.

    Alan.

    1. Re:does cable really have an advantage? by bogie · · Score: 0, Offtopic

      Off topic -

      I've always thought about getting rid of my landline but among the many problems with that is the fact that I've yet to hear a cellphone that doesn't sound like your on a cellphone. Some people can live with the fact, I can't.

      --
      If you wanna get rich, you know that payback is a bitch
    2. Re:does cable really have an advantage? by isdnip · · Score: 1

      This depends a lot on your cable company.

      Where I am, the Comcast plant, ex-MediaOne, is in good shape, and well maintained. I get phone service off of it and reliability is better than VeriZontal's. This is not VoIP, just TDM/FDM cable telephony. The cable modem's pretty reliable too, though there are sometimes outage -- most often upstream, getting to the Internet backbone. On the other hand I've known cable systems whose raison d'etre seemed to be to make VeriZontal look good. It doesn't hurt that I'm fairly near the cable head end and nowhere near the telco central office.

    3. Re:does cable really have an advantage? by Anonymous Coward · · Score: 0

      you sir, need to get a cable modem that's hardened against cat farts...

  9. Re:WRONG by darxyde · · Score: 1, Troll

    So you're going to wait until the bandwagon is already rolling then, rather than actually drive it?

    Doesn't really make much business sense...

    --
    Hey relax fella, you need a rest, guy.
  10. CallSmart==pretty stupid? by fiendo · · Score: 1

    From the CallSmart site: "Make sure your caller ID is unblocked. We use your caller ID to authenticate your account when you call." Has anyone else not heard of spoofing caller id?

    --
    I went to the city because I wished to live without deliberation.
  11. competition? by gid13 · · Score: 4, Insightful

    Well, it seems to me that this at the very least provides some valuable competition to the phone monopolies. Unfortunately, capitalism being what it is, it seems fairly likely to me that either VoIP or phone (probably VoIP) will eventually destroy the other, and unless we get more competition in the ISP market we'll just end up with another monopoly.

    I could be wrong, but I think that one of capitalism's biggest problems is industries that require a large infrastructure. I know that socialist approaches to most things tend to be less efficient (due to the lack of competition), but in a case like this I think it's better, since to get REAL competition we need multiple infrastructures reaching every single house, the cost of which of course would still get passed on to the consumer.

    1. Re:competition? by bladernr · · Score: 1
      I could be wrong, but I think that one of capitalism's biggest problems is industries that require a large infrastructure. I know that socialist approaches to most things tend to be less efficient (due to the lack of competition), but in a case like this I think it's better, since to get REAL competition we need multiple infrastructures reaching every single house, the cost of which of course would still get passed on to the consumer.

      But isn't the purpose in competition consumer benefit? Actually, competition has no implicit purpose, I guess, but in the US we tend to look for consumer benifit in areas of corporate competition (other areas restrict competition because of different interests involved, for instance, with laws that protect organized labor and stop competition among labor).

      Anyway, the type of thing you mention results in natural monopolies, or monopolies that represent the most efficient form of business for all concerned, and so are nearly impossible to compete with.

      In the future, I see convergance between communications providers so that they will compete on the whole spectrum. I also think the competition will be intermodal, so cable will compete with wireline who maybe will compete with the power infrastructure. I think that all services (TV, data, phone) will be naturally purchased from a single provider, at least for the masses.

      If this delivers better quality and lower prices, then is letting a series of natural monopolies develop all that bad?

      --
      Sarcasm and hyperbole are the final refuges for weak minds
    2. Re:competition? by OwnedByTwoCats · · Score: 1

      The problem is that natural monopolies frequently raise prices above economically-optimal to the profit-maximizing price point. There is no viable alternative for the consumer, so they can only choose between being gouged and doing without.

  12. Re:WRONG by cgranade · · Score: 2, Informative

    Troll. He also works middle-management for Honda and as systems manager at Apple.

    --

    #define DRM chmod 000

  13. first of all by segment · · Score: 3, Funny
    a VoIP offering would cannibalize their own POTS


    I think Cheech would like VoIP. I mean tihnk about it who doesn't cannibus tehir own pots or place cannibus in POTS or something.
    When I finish smoking tihs doob I'll come back to this post dude.

  14. Nobody wins yet... by cmowire · · Score: 4, Insightful
    I don't think the analysis is correct. Right now, nobody has a true upper hand.
    • Cable ISPs have no experience running a teleco, but they have a marginal technical advantage over a non-ISP VoIP provider simply because of better network routing
    • ILEC DSL ISPs (the phone company) can sell you a pure DSL connection without canabalizing their existing market simply because they will use VoIP instead of a splitter.
    • CLEC DSL ISPs (Covad) benefit simply because they don't need the phone company do to the splitter anymore.
    • Pure VoIP providers benefit because they have no fear of canabalization and they've already started. With the CLECs, they share the benefit of being folks who generally don't have people who have been mad at them since the 80s when the cable was always out of service and ma bell was busy screwing you over.
    1. Re:Nobody wins yet... by stacko · · Score: 4, Interesting

      Cable ISPs have no experience running a teleco, but they have a marginal technical advantage over a non-ISP VoIP provider simply because of better network routing

      Actually, I think that, by owning the network end point (i.e. the consumer VoIP gateway) as well as all of the switching fabric between the end point and the VoIP-to-POTS gateway, the ISP has a substantial advantage in terms of quality of service.

      Think about it this way: by using the QoS features that come with the switches, the ISP could guarantee a much better user experience for their customers, while third-party VoIP providers would have to trust best effort. (In fact, if they ISPs are less-than-moral, they could also use QoS on their network to ensure that they had better voice quality than any competitors that also rode their network.)

  15. Telco regulation is so bass ackwards by peterdaly · · Score: 1

    If the CallSmart system has to pay these fess, any other tone prompted computer callin PBX should have to qualify as well...that's essentially all CallSmart is.

    As a US citizen I am both pissed off, and embarrased this is how my country is helping us "advance" telco technology and telco business models.

    -Pete

    1. Re:Telco regulation is so bass ackwards by tealover · · Score: 1

      As a US citizen I am both pissed off, and embarrased this is how my country is helping us "advance" telco technology and telco business models.

      Are you embarassed enough to do something about it beyond complaining? If not, consider yourself part of the problem.

      --
      -- You see, there would be these conclusions that you could jump to
    2. Re:Telco regulation is so bass ackwards by isdnip · · Score: 2, Informative

      Well, no; CallSmart is pushing the rules, quite obviously and quite openly.

      Under FCC guidelines (not formally "rules" yet, a phone to phone nonlocal call that crosses state lines is properly treated as long distance, whether or not it happens to use IP, ATM, or smoke signals in the middle of it. The local phone companies are thus allowed to charge "switched access" charges, rather than local; for a rural company, those charges can be quite stiff. CallSmart is claiming that their phone-to-phone service is not what it is. MCI, btw, claimed the same thing about its Execunet service in 1976; that case was eventually settled by the creation of the carrier access charge system that remains in effect. (Before that, AT&T Long Lines and the Bell Operating Companies used a "separation of revenues" formula to pass subsidies to the latter.)

      Rural phone companies face very heavy capital costs (often over $10k/line), which cannot be covered by "affordable" monthy rates. So there's an elaborate subsidy system in place. CallSmart is evading it. Now it's easy to understand why they'd want to, but somebody has to pay for those rural phone lines, and monthly bills typically cover less than 1/5 of their cost! The rest comes from bloated LD access charges (what CallSmart is evading) and direct subsidies (that "Universal Service" line item on your LD bill largely goes to rural telcos).

      I don't think the current system is right -- it encourages inefficiency, excessively discourages wireless substitution, and leads to arbitrage hacks like this. But CallSmart is not Vonage, which gets by because it requires a computing device (AT-186) at the customer site and is thus not "phone to phone" but technically "computer to phone". And yes, a PBX can be subjected to switched access charges too; I know of cases where that was arranged.

  16. cable's core business could be attacked as well by bob_calder · · Score: 3, Interesting

    If a baby bell gets together with local broadcast stations to distribute free over-air digital tuners, cable operators will lose their core business. They reached max penetration several years ago and have been casting about for revenue sources. One thing they tried was an alliance with broadcasters for central services. It was damaged by nonlinear insertion and cheap storage availability.

    Take the number of stations within sixty miles of you and double it. That's the approximate number of sources of free programming. The advertising revenue will come back into the community too. You can subscribe to specialized stuff on broadband. Wrestling, Celebrity sports, E!, all the shit you so desperately need.

    --
    Any preoccupation with ideas of what is right or wrong in conduct shows an arrested intellectual development. (Wilde)
    1. Re:cable's core business could be attacked as well by Wesley+Felter · · Score: 1

      If a baby bell gets together with local broadcast stations to distribute free over-air digital tuners, cable operators will lose their core business.

      Why? Digital TV just gets you the same channels that are already available in analog broadcasts. The fact that so few people watch analog broadcast TV should tell you that people aren't satisfied with those channels. And why would Baby Bells give away TV tuners?

      Take the number of stations within sixty miles of you and double it.

      Are you saying that digital TV will have more range or will cause new channels to magically appear? I don't see any evidence of either.

      I can't escape the feeling that IHBT...

    2. Re:cable's core business could be attacked as well by Grishnakh · · Score: 1

      Why? Digital TV just gets you the same channels that are already available in analog broadcasts. The fact that so few people watch analog broadcast TV should tell you that people aren't satisfied with those channels. And why would Baby Bells give away TV tuners?

      Yeah, who even watches local TV anymore except retirees who don't have cable? The only channels I ever watch anymore are Sci-Fi, Discovery, and TLC. I'd just laugh if the local phone monopoly tried pushing TV tuners that could only receive the local stations.

  17. Re:WRONG by line.at.infinity · · Score: 5, Insightful
    raisinets wrote:
    I work for the AT&T telco division....
    You were working for Apple 2 hours ago, for Honda 2 days ago. That's quite an amazing feat.
  18. Phone companies shouldn't feel threatened by armando_wall · · Score: 2, Interesting

    I understand why phone companies see a threat in VoIP providers, but they shouldn't. Maybe they'll experiment some looses during the time the hype is high, but later on things should be roughly back to normal (or even better, thanks to better marketing and competition strategies).

    That's because a lot of customers using VoIP for international phone calls wouldn't make those calls using conventional phone services anyway. I know I wouldn't. If VoIP was not available, and I need to keep in touch often with people overseas, I'd prefer to use cheaper alternatives such as e-mail or IM (even internet conference technology).

    But of course, that's my two cents... feedback is gladly welcomed.

    1. Re:Phone companies shouldn't feel threatened by Wesley+Felter · · Score: 2, Insightful

      I understand why phone companies see a threat in VoIP providers, but they shouldn't. Maybe they'll experiment some looses during the time the hype is high, but later on things should be roughly back to normal...

      Things may get back to normal for the industry as a whole, but the telcos will not survive the transition to VoIP due to their massive amount of capital assets which are becoming increasingly worthless.

    2. Re:Phone companies shouldn't feel threatened by DOCStoobie · · Score: 1

      I see your point, but here's why cale isn't going anywhere anytime soon.... BANDWIDTH .... lets get down to "nuts and bolts" here ..... frequency available thru a POTS infastructure... 2 Mhz (at 5000 ft or less.) .. now cable on the other hand ..... 1 Ghz at a virtually limitless distance(using hybrid-fiber-coax system)... bottom line, cable will soon have DVR's, VOD, VOIP, 10 MBps broadband, with digital compression 400 to 500 channels, ETC... Sure, RBOC's can compete with DSL, but nowhere near the bandwidth available on DOCSIS 2.0 (see cablelabs website..) Sattelite can compete with number of channels, but no bandwidth for anything interactive such as VOD... Oh, and take a look at Circuit-switched telephony over cable.... (ARRIS's Cornerstone product).. I have COX for my video, voice and data. pay $95 a mo. for unlimited local and domestic long distance, 200+ channels of Digital Cable, and 3.2Mbps down, and 256K upload... and they will offer me both DVR and HDTV in the next month or so.. Bottom line, HFC (hybrid-fiber-coax) will dominate for at least the next 5 to 10 yrs until fiber to the curb is actually cost effective... and thats my $.02

  19. Re:So? Cable is unreliable by Anonymous Coward · · Score: 2, Informative

    rofl. pots is more reliable? i think you just have crappy cable.

    i have comcast that stays up pretty much all the time. its been down like twice in 31/2 years. plus i get better than dial-up or dsl speeds (3.5x1, yay). and i actually pull those speeds.

    i also work for a major DSL ISP/POTs provider (yeah, i dont have it, that should say something) and trust me POTs is NOT more reliable than cable. its down all the time and is usually effected much more so by weather than wonderful cable.

    at any rate i no longer have a home phone anyway (cell phone and cable net, w00t) so thats just my 2 cents.

  20. Already signed up by Anonymous Coward · · Score: 0

    Got an email last week, asking for beta testers. Half off the first 3 months (making it $20) and a "free install" is not *too* bad a deal.

  21. It has all happend before by Low2000 · · Score: 1

    Thinks like this have happend before. Right now, we have things like Direct TV. Cable TV isn't dead. I know that it's a little different but both types of the same service will have their followers.

  22. It's all economics by Anonymous Coward · · Score: 3, Interesting

    In a small business you typically need lots of phone lines. VoIP offers you several for a fraction of the cost. It costs about $100 per line and with 12 lines that's $1,200 per month. VoIP offers significantly cheaper prices.

    I'm not sure if the price difference is really warranted because the technology behind your old-style phones is fairly mature. It seems like they're gouging you out of pure greed because of the monopolistic control phone companies have.

    Or local Verizon in my area is about $35 for no-frills nothing service.

    Compare that with my cellular verizon service which is about the same price except with voicemail, caller ID, "free" longdistance because they must remain competitive with other cellular carriers.

    VoIP is a frightening technology and I would prefer if it was avoided. But when you're a struggling small business and are looking at reversing your cash flow hundreds of dollars per month you really don't have any choice at all.

    1. Re:It's all economics by bob_calder · · Score: 2, Insightful

      If the infrastructure is good, then you can do it. I had a five line office and would NEVER subject my customers to even good VOIP quality. To me a high committment to customers means they should feel that they are sitting next to you. So it would have to be rally rally superb. Like up around 41mhz. Well, maybe not that good, but you get the picture.

      --
      Any preoccupation with ideas of what is right or wrong in conduct shows an arrested intellectual development. (Wilde)
    2. Re:It's all economics by Anonymous Coward · · Score: 0

      I think POTS only samples at about 8k. Remember, its only analog at the last mile, and the sound quality really isn't that great (why does music on hold sound so terrible?). Good VOIP certainly isn't any worse than a POTS line.

  23. you have to have a valid account by bob_calder · · Score: 1

    to use a spoof - otherwise it gets rejected. So how do you harvest them? That would involve some less than legal activities. Kudos for trying though.

    --
    Any preoccupation with ideas of what is right or wrong in conduct shows an arrested intellectual development. (Wilde)
    1. Re:you have to have a valid account by Anonymous Coward · · Score: 0

      Ah yes, people interested in committing fraud wouldn't think of committing less than legal activities.

  24. There is no Altruism in VOIP by tintruder · · Score: 4, Interesting
    Current FCC regulations leave a big loophole for IP-based services.

    Taxes that apply to current voice tariffed services do not apply to "data" services the same way.

    Since all the carriers are actually carrying most, if not all of their "voice" traffic by the same methods, on the same kind of equipment as "data", there is money to be made carrying voice but calling it data.

    Very little infrastructure remains circuit switched and is now packet switched like data. Much of this was driven by the requirements for pumping a bunch of traffic over fiber; WDM, DWDM etc.

    Now the efforts are clearly to pave the way for providers to pocket the difference or most of it; this difference being the amounts charged to the customer which are turned over to the government as taxes.

    If you pay $100 per month for "voice" services and $30 of that is taxes, and you switch to VOIP for $85 without taxes, you save $15 at the same time the provider makes an additional $15.

    And this doesn't even address the investment tax credits and "cost of doing business" deductions the providers enjoy for building up the ability to offer new services.

    So what we have is a bunch of people angling for position in the inevitable VOIP fray.

    Some are clearly innovators.

    Some want to be first just to stake a claim for later work.

    Some have deep pockets but nothing else to offer. So they are about to expend massive legal fees and efforts to keep others out of the game.

    If you can't innovate; Litigate.

    The end result will ultimately be that the average customer spends about the same as they do right now. How the fees are assessed will look different, but the bottom line will be pretty much the same.

    The providers will then benefit or fail based upon how successful their legal tactics were in creating, sustaining or closing tax loopholes in order to benefit their bottom line.

    There is no altruism in the move to VOIP.

  25. they already have the most important thing - by bob_calder · · Score: 1

    Customers who are already used to sending them money every month.

    --
    Any preoccupation with ideas of what is right or wrong in conduct shows an arrested intellectual development. (Wilde)
  26. Re:So? Cable is unreliable by Sarojin · · Score: 0

    Agreed. Even during a power outage, I can use my POTS phone since they're pumping some power through the lines.

    --
    HOW'S MY POSTING? CALL 1-800-POSTING
  27. Cheaper to run, but same quality? by panaceaa · · Score: 2, Interesting

    We just got Cisco IP phones at my work. I notice that when I talk on them I can't hear my own voice in the headset. With normal phones I can always hear myself back. Especially when I blow into the receiver. Maybe with normal phones there's an echo from the electronics looping around... but I like it! It makes me feel like my voice is going into the network.

    With the IP phones I lose my train of thought because I feel like I'm talking to myself rather than into a phone. It weirds me out. Do all IP phones take away the echo, or is it just the kind we have?

    1. Re:Cheaper to run, but same quality? by Anonymous Coward · · Score: 1, Informative

      the 'echo' you hear in POTS phones is called 'sidetone', and it is intentional. I didn't know that IP phones don't have sidetone.

    2. Re:Cheaper to run, but same quality? by panaceaa · · Score: 1

      Maybe some IP phones do have sidetones. The Cisco 7960's we're being given don't though.

      Thanks.

    3. Re:Cheaper to run, but same quality? by helzerr · · Score: 3, Informative

      Talk to your VoIP administrator. There should be an option to turn on sidetone and maybe even an option for "comfort noise" so the phone doesn't sound too quiet when no one is speaking.

    4. Re:Cheaper to run, but same quality? by Ungrounded+Lightning · · Score: 1

      the 'echo' you hear in POTS phones is called 'sidetone', and it is intentional. I didn't know that IP phones don't have sidetone.

      The main purpose of sidetone, by the way, is to help you control the level of your voice. Secondarily it also lets you know that the phone is working, removing a distraction.

      --
      Bantam Dominique roosters crow a four-note song. Once you've heard it as "Happy BIRTHday" you can't NOT hear it that way
  28. POTS won't die for a while... by pdaoust007 · · Score: 5, Insightful

    As exited as I am to see Internet services such as VoIP become mainstream, part of me still thinks that POTS will still be here for a while.

    A couple of things to consider:

    - You need broadband and not everybody has it, can get or will ever want it
    - Cable and DSL (especially cable according ot my own experience) are definitely not as stable as POTS. They are next to useless when power is out unless you AND you proveider have UPS
    - Emergency services are still an issue with VoIP. I'm expecting the first headline about someone dying because 911 wasn't available on VoIP anytime now.
    - There is still no end to end QoS on VoIP. Home gateways are still too dumb to prioritize VoIP trafficover your Pr0n traffic.

    1. Re:POTS won't die for a while... by mandolin · · Score: 1
      Home gateways are still too dumb to prioritize VoIP trafficover your Pr0n traffic.

      Or vice versa..

      "damnit grandma, I can't talk right now, it's interfering with a *very* important download.."

    2. Re:POTS won't die for a while... by wintermute740 · · Score: 1

      As exited as I am to see Internet services such as VoIP become mainstream, part of me still thinks that POTS will still be here for a while.

      A couple of things to consider:

      - You need broadband and not everybody has it, can get or will ever want it
      - Cable and DSL (especially cable according ot my own experience) are definitely not as stable as POTS. They are next to useless when power is out unless you AND you proveider have UPS
      - Emergency services are still an issue with VoIP. I'm expecting the first headline about someone dying because 911 wasn't available on VoIP anytime now.
      - There is still no end to end QoS on VoIP. Home gateways are still too dumb to prioritize VoIP trafficover your Pr0n traffic.

      A couple of points to make:

      -Some of us do have broadband, so VoIP is a great alternative to POTS.
      -I've only had one cable outage. When I first got my cable installed, the ground was frozen so it wasn't buried. My cable ran across the corner of my neighbor's yard. He mowed over it in the spring before the cable company had a chance to come back and bury it. Aside from that, I've had 0 cable outages. A UPS is cheap. I've got one on all critical systems.
      -911 service is available. It's not the same as 911 from POTS or cellular, but it is available.
      -Some of the gear available to WISPs offer end-to-end QoS for VoIP. Also, my gateway is a Linux box. It's easy to do bandwidth shaping to prioritize anything going to the IP address of my VoIP box.

      Just thought I'd throw these out there, since I've been without a POTS line for about a year since I signed up with Vonage. It's been as reliable as SBC's POTS line was for me.

  29. Cable companies != common carrier. Beware. by clustercrasher · · Score: 5, Informative

    It is a little known fact that cable companies were ruled as not common carriers. That means that customers have very little protection from lack of service, privacy issues... Once we allow them to provide phone service without those protections we will erode those rights even further. $20/month for a phone line is a good deal. Do you think that will last if the phone companies are driven under?

    1. Re:Cable companies != common carrier. Beware. by bob_calder · · Score: 1

      The common carrier sword cuts both ways. The law also limits liability of a common carrier. If the cable company gets into VOIP, they will have unlimited liability if they drop a 911 call and somebody dies. They probably fought for years to stay away from the responsibilities, but they will scream for protection soon.

      It also means they will have to invest in updating their rotting infrastructure. Also, those little booster boxes will have to have batteries for backup.

      --
      Any preoccupation with ideas of what is right or wrong in conduct shows an arrested intellectual development. (Wilde)
  30. It is nothing new by leerpm · · Score: 1

    It has been happening since the dawn of the industrial revolution. Businesses will attempt to seize market domination and then use their political influence to maintain their monopolistic positions. This will never change, the only we can do is make sure that we have laws in place to protect against it.

  31. you should read about it then by bob_calder · · Score: 1

    The end of the timetable for broadcasters to convert to digital has come. Virtually everybody is on the air now. The reach is better although the tower has to be high. Stations with owners who have brains have been putting in new or extending them for several years. The bandwidth the government has GIVEN the industry is enough for one HD or two standard definition (D1 or whatever) streams of data. Thus double the number of choices. They have a huge issue to deal with. They are at the end of a financial situation like the one faced by the newspapers in the 80's. The possibility exists for the local broadcsters to make the cable operators take their turn at teh bottom of the heap. Support from a telco could make a critical difference in a number one (NY, LA, Chicago, Miami) through five market.

    --
    Any preoccupation with ideas of what is right or wrong in conduct shows an arrested intellectual development. (Wilde)
  32. does cable really have an advantage?-Rumblings. by Anonymous Coward · · Score: 0

    "If our cat farts within ten feet of the modem, we have an outage."

    The Klumps have a cat!

  33. Sprint and MCI [anonymized] by Anonymous Coward · · Score: 2, Interesting

    They'll be providing some of the back-end service for this (as opposed to them being in the foreground). Time Warner wants this under their name. I've been involved with this for a bit because a number of the large servers I sysadmin (which are local telco boxes) have been involved in adaptations for this project. Should be interesting.

    1. Re:Sprint and MCI [anonymized] by ONU+CS+Geek · · Score: 2, Informative

      I was under the impression that all of the VoIP traffic was going to be transit'ed over either the Time Warner Telecom Network or the Aol Data Transit Network.

      Now, I'm not sure who's going to do the final VoIP-> POTS integration, or who's handling that...but it was my understanding that Time Warner was going to piggyback this on their DOCSIS network -- one of the reasons they they bumped up RoadRunner to 3 Megs Up/Down bandwidth.

      From a Technician's stand point, I really hope that before Time Warner goes to VoIP they do the "One Drop for Life" program that Charter uses. When I was a tech down at Charter, I rarely had to replace a drop, however, I've replaced more drops up here than I'd like to mention. If they forced stricter Quality Assurance testing on the contractors as well as the installers, and paid their in-house technicians a bit more, we wouldn't have the "when it rains my cable dies out" problems (and those are typically bad grounding block issues or bad drop issues).

      Eh, just my thoughts.

      Ian

      --

      I disable sigs...do you?
  34. HE'S A SLACKER by Anonymous Coward · · Score: 0

    The lazy bum can't hold a job.

  35. VoIP in office setting by wchao · · Score: 3, Informative

    We actually use VoIP at my office: www.microoffice.us/slashdot. It works reasonably well and allows us to provide an extremely cost-effective office suite package (office space, phone, high-speed Internet, mail, meeting spaces, etc...) to our customers. Our customers are primarily solo entrepreneurs (e.g., consultants and freelancers) and very small businesses who are price-conscous.

    You really have to be careful about the data network though. We have near-dedicated bandwidth from our data provider, which is why quality is good. Forget about trying to serve business class users with VoIP over cable modem or DSL -- the quality goes to hell when someone tries to download a large file. The QoS really has to take place upstream of you (at the point of the bottleneck). Otherwise it doesn't achieve much.

    1. Re:VoIP in office setting by Anonymous Coward · · Score: 0

      "Forget about trying to serve business class users with VoIP over cable modem or DSL -- the quality goes to hell when someone tries to download a large file. The QoS really has to take place upstream of you (at the point of the bottleneck). Otherwise it doesn't achieve much."

      Seriously get a real router or a well configured Linux box and try a DSL set up. Works well here for 40 users in a small branch office.

  36. VoIP: No Excise Taxes by Brown+Line · · Score: 4, Informative
    Don't forget that VoIP has a huge price advantage over "plain old telephone service": it's immune to local excise taxes. Take a look at your phone bill some time and you'll see how much of it goes to your local municipality: those are dollars that can be split between the customer and the carrier.

    I'm curious to see what alliances will be formed: local governments and the phone company on the same side for once, against cable providers and possibly the FCC. It could be a real dog fight.

    --
    [this .sig for rent]
  37. Remember when by bob_calder · · Score: 1

    people had the same attitude about IBM?

    Everybody has to ride their (telco) depreciating capital assets to get from here to there. VOIP uses the same infrastructure unless new infrastructure has *magically* appeared. ;-) harmless jest, OK?

    The Cable infrastructure is not maintained at the same level of the phone company. That's why people complain a lot.

    --
    Any preoccupation with ideas of what is right or wrong in conduct shows an arrested intellectual development. (Wilde)
  38. Why have a landline at all? by brunes69 · · Score: 2, Informative

    I ditched my landline 6 months ago and haven't looked back. I get tons of free features I didnt get with my landline ( like caller id, etc ), no solicitations at all (isn't this even illegal?), and I can take my phone with my where ever I go (or leave it at home if I don't want to be disturbed).

    And to boot, its all about 10 bucks cheaper / month than the landline was ( 300 anytime minutes + unlimited evening and weekend + unlimited long distance - who uses more than 300 minutes during the weekdays? You're probably at work and using the company phone).

    Seriously I don't know why people bother with landlines. The solicitations alone were enough to drive me away.

  39. Home VOIP abyssmal shared performance by tintruder · · Score: 0, Flamebait
    Take a look at this review of a home VOIP Gateway by D-Link used in an ATT Beta test.

    http://www.bigbruin.com/html/dlinkdvg1120.htm

    The tester had a home cable connection where he saw nearly 6000k download rate and almost 1000k upload until he plugged in the gateway.

    Simply plugging it in ate up 700k of download speed.

    But the real killer came when he actually USED the phone:

    Download=75K

    Upload=39k

    Basically, the use of VOIP ate up 99% of the bandwidth of a very fast connection.

    For those with the more typical 1000k-1500k cable connection, the results are not promising.

    1. Re:Home VOIP abyssmal shared performance by Anonymous Coward · · Score: 0

      OK, so that's a shitty device. It's from DLink, what do you expect. All you need is about 8kb/s for a decent voice signal.

    2. Re:Home VOIP abyssmal shared performance by Simple-Simmian · · Score: 1

      It's also going to eat up all the bandwidth to us cable modem users as well. Crappy Idea.

      --
      If you don't like what I write don't be a CS and mod it down. Refute it.
      Yea I can't spell. So what is your point?
    3. Re:Home VOIP abyssmal shared performance by Anonymous Coward · · Score: 0

      I doubt it's using the bandwidth. The processing of VOIP and routing are probably handled together. When processing the VOIP the routing does not have enough hardware/processor cycles left over, and the data transmission slows down.

      Just a guess.

  40. causes communication issues for me by bob_calder · · Score: 1

    I have always disliked VOIP for that reason. I used for three years from 1999. I found that it hindered the small noises you get from people that signal things like emotion. That would be due to filtering and smaple rate limit I suppose. ??

    It is possible that being able to hear yourself is linked to speech patterns. I understand that stuttering may be related to this in some strange way.

    --
    Any preoccupation with ideas of what is right or wrong in conduct shows an arrested intellectual development. (Wilde)
  41. Let VOIP stand on it's own by Coolmoe · · Score: 1

    If there are problems with service these guys will get dumped for bad service and thier customers will get thier normal phone service again. I doubt that thier are enough people that will switch to run ma bell out of town anytime soon.

    Also if your worried as a business for service get 2 diffrent access providers. I bet that will get you security in your phone system. Especially where I live phone lines are on poles and tend to get hit by trees in storms. Data lines however are underground and not nearly as susceptible to this kind of damage.

    Government should not have to worry as long as thier are many players in the market.

    --
    Got hosting
  42. It's only a matter of time by Oriumpor · · Score: 2, Informative

    Before someone starts including TC on a Linux router with a pretty interface/enclosure. It's already pretty damn simple with the Arbitrator which (thankfully) the source is open to some extent. I'm sure someone else has come up with something (that is if you don't like cisco/3com or other hardware based systems.)

    I don't see how this apparently diverse market of Free/cheap QoS is going to somehow limit VoIP? End to end QOS is necessary, so ISPS will provide it, Why? Because your ISP will be your provider, and if I'm not mistaken, they can run the QOS on the connection they provide you.

  43. With VOIP there is no redundancy. by Anonymous Coward · · Score: 0

    Why isn't any /. user concerned with redun....

    Aw, fark it. when your IP line goes out, 9/10 says your POTS system will still be up. You jerks (not geeks, not nerds) don't get it. VOIP is not redundant. POTS is, Mechanical vs digital etc.

    A router problem in NY will take out half of your VOIP service. Do you want reliable or cheap.

  44. The only choice for consumers by appleLaserWriter · · Score: 2, Insightful

    In the business marketplace, VOIP makes sense for just about everyone. Any serious business is likely to be using a mix of frame for Voice and Fiber for data at the moment, VOIP allows this to all be consolidated into fiber pipes. This works well for the vendor because fiber is cheap to install and provision compread with DS1/DS3.

    At the consumer end of the spectrum, copper works fine for voice calls, and is required for DSL. So there is no clear advantage for VOIP over DSL. But with cable, the TV line that has already been expanded to carry data can now carry voice. Big win for cable network owners.

    I don't really care though, I've been a cell user for years. Would be nice if Nokia could work on the stability of the 3650 though :)

  45. Horrible idea by AntiBasic · · Score: 1

    Hey, let's use our garbage grade DSL or cable modem for voice service! The quality is abysmal but who cares! It's only $49.95 a month.

    Go to your telco and actually pay for at least a PRI people.

    1. Re:Horrible idea by Anonymous Coward · · Score: 0

      Uhm, yeah, maybe someone should get off their ass and come up with something that would provide a selectable quality of service for packet networks. Yeah, someone really smart. They could call it, oh, I dunno, QoS? How do you think they're doing video over cable and DSL? Sending a signal down the wire with nothing more than a hail mary?

  46. Re:Jihad SLASHDOT FARMS DATA FROM AC POSTS by Anonymous Coward · · Score: 0

    I do think that posts have been getting deleted from Slashdot lately. Just yesterday, one of my Amazon links got deleted. Either that or I forgot which article I trolled. Seriously, how many slashdot users have never posted something AC or logged in that got modded down?

  47. Don't you see some irony in this statement? by MadAnthony02 · · Score: 1

    Businesses will attempt to seize market domination and then use their political influence to maintain their monopolistic positions. This will never change, the only we can do is make sure that we have laws in place to protect against it.

    In many cases, the same thing that you are looking at to rectify the situation is the very problem that's creating it - more laws. There is an econmic theory called "rent seeking" that businesses will get laws passed to maintain or increase profits. Less regulation frequently means that companies have to succeed by actually providing a good product at a good price rather than using some form of regulation against their competitors.

    As far as maintaining monopolistic positions, sometimes those positions come into being throught government action in the first place. Think AT&T before deregulation, the airline and trucking industry before deregulation, your local cable company, water company, electric company, ect.

  48. Latency? by Ken+Treis · · Score: 1

    I don't have much experience with cable modems, but what I've seen is that latencies can be highly variable. This is really bad for VoIP.

    I have two high-speed circuits and I am a Vonage subscriber. My main router box is configured to use the DSL route for voice; the wireless link gave me too much drop-out.

    Is my experience with Cable circuits atypical, or have others experienced the same thing. And is anybody using a VoIP service over cable who can report?

    1. Re:Latency? by Anonymous Coward · · Score: 0

      I'm a cable subscriber (it's all I could get) using VoIP from Vonage, and other than a few small problems receiving calls from some phones, it works like a charm. No delay, and I can still used it while doing other things (streaming audio, playing online games, etc.) without any loss or effect on my ping times.
      Hope this helps a little

  49. Critical 911 services...over cable? by Lodragandraoidh · · Score: 3, Interesting

    It will be interesting to see how cable companies handle 911 and other emergency services (hospitals, government agencies etc.).

    This is really why (aside from reasonable rates for customers) that the Telcos are regulated - and fined heavily if they screw it up.

    Dialtone uptimes will be hard to manage for current cable networks - given the current traffic patterns as well as the poor scalability vis-a-vis DSL.

    Finally, don't worry about the Telcos; most if not all of them are already leveraging these new technologies in various creative ways to make copper wire a value added proposition into the forseable future. Don't overlook SDSL rollouts over the horizon - and who knows what is on the drawing boards. Given that copper wire touches more homes than cable - who do you think is really in a better position to take advantage of broadband communications of all types in the long term? Who do you think critical government agencies and emergency services are going to trust with their external communications gateways?

    I will leave those answers as an exercise for the user...

    --

    Lodragan Draoidh
    The more you explain it, the more I don't understand it. - Mark Twain
    1. Re:Critical 911 services...over cable? by Grishnakh · · Score: 1

      This is really why (aside from reasonable rates for customers) that the Telcos are regulated

      Huh? Since when did telcos have reasonable rates? Last time I checked, it was cheaper to use a cellphone than a landline, and the cellphone companies don't treat you like crap when you call customer service like Qwest does.

    2. Re:Critical 911 services...over cable? by Lodragandraoidh · · Score: 1

      That is not correct - at least where I live (not Qwest land).

      --

      Lodragan Draoidh
      The more you explain it, the more I don't understand it. - Mark Twain
  50. Power on a phone line by phorm · · Score: 1

    Emergency services are still an issue with VoIP. I'm expecting the first headline about someone dying because 911 wasn't available on VoIP anytime now

    To heck with 911 availability. As mentioned by many, power outages aren't friendly to cable. In fact, they're not friendly to the internet at all.

    Telephone lines have a voltage to them, which means that unless the phone line is severed, even having no power doesn't mean you can't call out.

    The scenario I see is that somebody is *fixing* a bad wire, whatever. He makes himself a path to ground, blows a circuit, and takes out the power. With the power out, you can't call 911 or anything.

    For the same reasons, they recommend that cordless phone users have at least one standard phone in the house, you can still call in an emergency.

    For myself, I don't understand the whole VOIP concept. Couldn't you do something similar with a permament domain name/IP with voice software? I've been actually thinking of playing with VGETTY (voicemodem stuff) in order to patch my server in as an answering machine etc.... could probably modify this to patch into a live stream somehow? Maybe I could use this so that if somebody is "calling" me from online and I'm not home, it will relay through POTS and call my cell.

    It would be nice for international calls... maybe with a Java applet available for that don't want to download an executable. I remember years ago getting very clear voice on a 33.6 modem to Australia... minimal lag and I think I was using video at the time too. Why do we need VOIP carrier for this?

  51. Cox Digital Telephone VoIP Service by XBL · · Score: 1

    I live in the Omaha area, and here Cox provides VoIP service. Here is a FAQ that is interesting to read how customers should see this service.

    This is also a good reference from CNet.

    1. Re:Cox Digital Telephone VoIP Service by h0d · · Score: 1

      Actually this is not VOIP, but rather voice over coax. Your telephone call is still using traditional technology at both ends. The NIU at your house converts the POTS signal to RF and then the HDT converts it back at the CO to goto the switch.

  52. VoIP: Been there, Done that, Welcome to Canada. by FFFish · · Score: 2, Informative

    D'yall know that Canada's Telus has been migrating to VoIP for all its long-distance traffic since July 2002? And that it has launched business service to Ontario and Quebec as of November?

    VoIP is already here... it's just that the USA lags leading telco providers by about three years!

    --

    --
    Don't like it? Respond with words, not karma.
    1. Re:VoIP: Been there, Done that, Welcome to Canada. by FFFish · · Score: 1

      I suppose I'd better emphasize this part, because everyone seems to think VoIP is something involving home computers or special telephones:

      TELUS -- ONE OF CANADA'S MAIN TELCOS -- USES VOIP FOR ALL ITS LONG DISTANCE TRAFFIC.

      If you are in BC, Alberta, Ontario, Quebec, or whereever else Telus operates, and you place a long-distance call, that call is done using VoIP.

      It's live, it's working, it's got QoS guarantees up the wazoo, and it's been here for at least a year.

      --

      --
      Don't like it? Respond with words, not karma.
    2. Re:VoIP: Been there, Done that, Welcome to Canada. by Anonymous Coward · · Score: 0

      I suppose I'd better emphasize this part, because..

      Emphasize to who? You need to stop talking to yourself.. because no one is paying attention to your emphasizing.

    3. Re:VoIP: Been there, Done that, Welcome to Canada. by cygnus · · Score: 1

      this article is about last mile VoIP. does Telus offer that? missing the point, are you?

      --
      Just raise the taxes on crack.
    4. Re:VoIP: Been there, Done that, Welcome to Canada. by The+Vorlon · · Score: 1

      Um. Whoo? VoIP usage for long-distance is completely uninteresting. I know Canadians have a cultural superiority complex where their southerly neighbors are concerned, but geez, most of the major providers in the US are also using VoIP for their long-distance traffic. So what?

      VoIP to the end-user is much more interesting, because it has a direct impact on the consumer market. Using VoIP instead of ATM for telco long distance just reduces the carrier's overhead; replacing POTS lines with QoS-enabled broadband, OTOH, has real potential to shake up the playing field where telecommunications are concerned.

  53. Why Minnesota? by cyril3 · · Score: 2, Funny
    Interesting to see how this one works out, given what happened in Minnesota a few months ago.

    Not knowing what you were talking about I did a quick search on Minnesota and you're right. This is the most exciting event in the history of the World compared to what has happened in Minnesota in the past few months.

  54. Re:So? Cable is unreliable by lelnet · · Score: 1

    >i think you just have crappy cable.

    I don't know about the original poster, but "you must have crappy cable" is kind of a no-brainer. I don't know many people whose cable service is remotely as reliable as their POTS service...especially now that POTS is a competitive market while cable still isn't.

    Cable is crappy. Period. I wouldn't have ditched POTS for VOIP if I hadn't been able to get wireless broadband. No way does anyone sane with anything like the experiences I've had allow their sole link to the outside world to depend on the reliability of their cable connection.

  55. Re:So? Cable is unreliable by Sivaram_Velauthapill · · Score: 2, Insightful

    I haven't tried VOIP or anything like that but POTS is more reliable than cable in my area. My "low-speed cable" goes down once in a while. Maybe it might be my area but I have certainly noticed it. Having said that, I have no idea how DSL is. I have not had DSL for long periods of time.

    Also, one other thing... I use the internet a lot. I am pretty much on it many hours (especially since I'm unemployed :( ). Telephone on the other hand is only used occasionally (a few calls once in a while). So maybe I am just noticing the cable problem more because I use it more. The ideal case would be to compare DSL to cable (but as I said, I haven't had DSL for long enough to make any worthwhile comment).

    Sivaram Velauthapillai

    --
    Sivaram Velauthapillai
    Seeking the meaning of life... @slashdot of all places ;)
  56. You won't need to call. by raehl · · Score: 1

    Who do you call when your telephone service goes out?

    They'll notice that they're suddenly not getting calls from a given area. If it's just you, you use your neighbors phone. And if you don't have a neighbor, well, you don't have cable either.

  57. Well, the real issue is... by raehl · · Score: 1

    The submitter assumes that the phone companies want their POTS and long-distance revenue. The problem with that kind of revenue is getting it (maintaining the networks) is expensive. The question is, will they get as much PROFIT by switching to VoIP, which I would argue they would, so there's no real advantage for cable there.

    As for reliability, I Can't remember the last time my cable TV was out, although my cable modem had its issues until they installed a booster - the frequency your cable modem signal operates at is distance and interference finnicky. (Yes, that's a technical description.)

  58. Already done in Rochester, NY by ubrgeek · · Score: 2, Interesting

    When I was with TW in upstate NY, they were already offering VoIP phone service and the customers loved it ... those that could actually get it. They limited the offering to (if I remember correctly) 5,000 customers and you had to live in a _very_ particular area (sufficient emergency backup power was the key issue.) The consensus was that we were offering the service back then (5 years ago?) so that when the technology evolved, TW would already have experience with it and (supposedly) be in a better place to take advantage of it. They even went so far as to take the very successful GM of the Rochester operation and move her to HQ to head up the project.

    --
    Bark less. Wag more.
  59. TW's Service FAQ by Anonymous Coward · · Score: 0

    RTFWP

    http://www.twcdigitalphone.com/raleigh/faq.htm

  60. The Big Win by sysadmn · · Score: 2, Insightful

    A cable company competes on two fronts: entertainment and the higher-margin data services. The big win for TW is not that this allows them to compete more effectively with DSL providers; it's that you can't (yet? ever?) do this over a Satellite connection. That allows them maintain price on the entertainment offerings and keeps customers loyal.

    --
    Envy my 5 digit Slashdot User ID!
  61. Shifting tax structure by Miamicanes · · Score: 1

    Ultimately, the government will realize that trying to tax VoIP to VoIP calls is a hopeless lost cause. Where it will most likely end up throwing around its weight is at the edge, where VoIP calls interact with the PSTN (ie, VoIP to "local" call, cell phone, etc). My personal predictions...

    * Some fixed monthly FCC-imposed tarriff imposed for VoIP access to the PSTN (like the current network access surcharge). No fee, no access.

    * Higher taxes on call terminations to the PSTN. Way higher.

    * Possible tax on phone number itself.

    * Lower taxes on PSTN service in general.

    The FCC can't do a thing about VoIP calls that never touch the PSTN at all (as a practical OR legal matter), but I suspect it's going to get increasingly aggressive about its dealings with anyone whose VoIP network touches the PSTN in any way.

    On the other hand, I can see RBOCs themselves getting into VoIP for local service.

    Suppose, for instance, you had local phone service with DSL. Except you hardly ever used the local phone line directly... By default, your calls to the "main" number, as well as the rest of the virtual IP-based quasi-centrex system you pay BellSouth $50 a month for (with no hard limit on the number of simultaneous outgoing or incoming calls, up to a half-dozen phone numbers, and as many quasi extensions as you want to define for the auto attendant) go to the VoIP router you've got the rest of your home phone system plugged into (or the SIP phones strewn about the house). But when, for whatever reason, BellSouth realizes that it can't reach your VoIP router (say, a power outage), it automatically routes all your incoming calls to the physical phone line (which is connected to an old fashioned phone somewhere in the house). Likewise, if the router discovers that it can't reach BellSouth over the DSL line, it automatically tries to fail over ot the POTS line.

    The end result: the best of all worlds (except maybe cost)... PSTN reliability, with VoIP freedom and flexibility. And grandma still knows how to call her sister on the phone ;-)

  62. Re:Jihad SLASHDOT FARMS DATA FROM AC POSTS by Zeriel · · Score: 1

    Was true in 2001. Not true now. I just tried it.

    Posting as my real account, from my real IP, into a BANNED THREAD!!1!! Oooh, so scary. The big bad editors are gonna take my mod points away because I posted in this thread.

    Get a grip. The editors don't care about you, or any of your troll brethern. They care about three things--high readership, keeping the site funded and alive, and readability of discussions.

    Considering anyone using anti-slash's database-o-crap or crapflooding this junk is ruining point #3 (and by extension the other two), y'all deserve what you get.

    --
    "America has done some terrible things. But I know that Americans don't cheer when innocents die." -Dave Barry
  63. no advantage at all. by Anonymous Coward · · Score: 0

    If you've had Road runner you know that nobody is going to change to this quickly, who wants to lose their phone at least once a day for a few hours because the inept net engineers can't keep a fucking LAN operating.

  64. Re:Jihad by Zeriel · · Score: 1

    There are two kinds of people. One sees something he doesn't like and tries to fix it. He works hard and patiently, and keeps his moral high ground even when the object of his attentions is falling by the wayside.

    The other kind sees something he doesn't like and says "Waaa, this sucks. Let's destroy it!". And tries. But he can't, usually, because he's just a stupid troll who's easily ignored.

    Posting logged-in in a "banned thread". Oooh, scary. I'm'a get the bitchslap....wait, no I'm not. If the editors cared about your antics as much as you think they do, they'd ban every IP associated with this crap. Since they don't, I can only assume they're as bemused about stupid trolls as most of the rest of us are.

    --
    "America has done some terrible things. But I know that Americans don't cheer when innocents die." -Dave Barry
  65. Re:So? Cable is unreliable by shakah · · Score: 1
    Why would I want to change to VOIP when I'm not insured that cable will always be available -- especially since a POTS system is much, much, much more reliable.
    Probably because of the price difference.

    For example, you might:

    • decide that saving $20/month (or more) offsets the decrease (if any) in reliability ;
    • be looking for a secondary line primarily for use by your adolescent children, and maybe the price difference v. the ILEC's offering offsets the perceived reliability issue in that case ;
    • have started to treat your cellphone as your primary line, but want a cheap full-featured land-based line for some reason.
    • etc.
  66. Freudian mis-read on my part... by Anonymous Coward · · Score: 0
    On first glance I thought the headline said:
    VoIP Gets A Big Pecker And Another Lawsuit
    and thought "Hey! I wonder if they were taking those pills my spam wants to sell me?"
  67. VOIP all Packet networks vs PSTN by Anonymous Coward · · Score: 0

    www.ultimatemedium.com

  68. Cry me a river by Anonymous Coward · · Score: 0

    If the telcos can't find away to compete with the cable companies then the telco's go out of business. So What that is a market economy. There is nothing wrong with the telco going out of business, when they do the cost of VOIP will drop becase more users will be interested in the service. Don't give me some crap about poor people not being able to afford basic phone service, becase 1. NOBODY IS ENTITLED TO A TELEPHONE and 2. YOU CAN GET BASIC CELLULAR SERVICE NOW FOR THE SAME COST AS A LOCAL PHONE, even if you have fewer minutes

  69. Re:So? Cable is unreliable by Anonymous Coward · · Score: 0

    I've had DSL (through copper) for 3 years with only 1 2-hour connection outage, and 2 email server problems. My cable tv was down every other week until I got satellite. Not only that, they force you to view ads on a cable guide which you are paying for!

    No thank you. If I pay, I don't want the ads taking up that screen real estate where there should be a programming guide.

    Absolutely no way I am buying any product from cable companies, ever again, unless satellite goes away.

    It is too expensive, they rip you off (by forcing ads, which you are paying them to avoid, down your throat) and I feel the value simply isn't there.

    Not only that, cable is shared media. The more subscribers they get, the slower it goes.

    I'll take switched DSL any day of the week, even though none of the providers has an SLA that guarantees anything.

    l8,
    AC

  70. Three numbers... by sean.peters · · Score: 1

    9-1-1.

    I have a wife and a baby daughter at home. Until such time as position locating 911 service is available via cell, we're keeping our landline. In case something happens at home, I want them to be able to dial 911 and have help on the way IMMEDIATELY.

    Sean

    1. Re:Three numbers... by brunes69 · · Score: 1

      Get a phone with GPS. These are readily available and hook into the 911 system such that the position is automatically known to personell.

      These have been available for a long time now. And according to this article all Sprint phones have this capability.

      http://www.compukiss.com/populartopics/tech_gadg et shtm/article691.htm

  71. Re:So? Cable is unreliable by Grishnakh · · Score: 1

    I used to have DSL through Qwest, and now have a cable modem with Cox. I'll take cable any day. I also had DSL through Covad and Flashcom back when they were in business.

    DSL with Covad and/or Flashcom was superbly reliable. Not as fast as cable, but I never, ever, had any problems with it.

    When I moved and Covad couldn't service me, I went with Qwest DSL. Big mistake. The connection was always reliable, but the problem was the ISP was not. Who was the ISP? MSN of all companies. Never again will I ever send those bastards any of my money. And since Qwest is partnered with MSN, you don't have much choice for your ISP unless you want to pay a big surcharge, in which case you might as well just go with cable. MSN was constantly giving me problems: their nameservers were constantly down, forcing me to find other open nameservers to steal service from (I think I used the University of Hawaii's). Their other services were plagued with problems including both unreliable service and poor implementation (the newsserver was missing all kinds of groups). And the worst part was the whiny tech support dweebs.

    Now with Cox, my cost is cheaper than Qwest/MSN, and while I have occassional service problems, they're only a couple minutes in duration when they happen, not whole days like MSN. Combined with the far superior speed, the more complete services (news, etc.), and the lack of intentional locking into MS-only software, Cox is a far better choice.

    This is in Phoenix, BTW. Your area and the companies in your area may be very different.

  72. More info by charnov · · Score: 1

    Ok...I probably should have been more thorough talking about my situation. We currently have $200K of digital PBX equipment tied to a T1 that is our phone system. The system cannot handle VoIP. Our phones are older digital phones that cannot handle VoIP directly (switching systems that translate from VoIP to this model exist but the system becomes unreasonably complex and service contracts are involved). So we have a good, working system that does what we want. The idea of going VoIP is that we can route our own long distance (we have satellite offices around the country) and save beaucoup bucks. I know we can use VoIP bridges and other traffic techniques, but the powers that be want to be able to dial an extension in Austin and get someone in Indy. Best method demands going VoIP all the way. Infrastructure changes are NEVER about the initial cost, they are about the value added to the business. Even if this cost millions to do, but in ten years we would be 50% more efficient becuase of the business process change, we would do it. The decision rests on if it makes sense from a process and infrastructure perspective.

    Currently it is looking like we will NOT be going VoIP and I have been told to keep an eye on Wireless Mesh networking to use as a transport for our needs in five to ten years. Yes, we plan that far ahead. Our 25 year goal with telecom is to have complete control over every inch of our infrastructure. We have even discussed buying our own satellites ($5 Mil for a transponder on an existing bird).

    --
    [RIAA] says its concern is artists. That's true, in just the sense that a cattle rancher is concerned about its cattle.
  73. You are a sheep by Anonymous Coward · · Score: 0

    Read our manifesto. Our goal is to get slashdot to fess up. Until that happens we will never cease in our jihad operations.

  74. Re:Jihad by bsd+troll · · Score: 0

    Don't forget the stupid people who reply to trolls.

  75. Cost vs. Benefit by chaddb · · Score: 1

    A comment on the presumed advantage held by ISPs providing VoIP phone service over third-party VoIP/PSTN providers (such as Vonage)may not be as great as it may seem. This view is based on the sunk cost yet to be recovered for network facilities left over from the DOT com explosion. Network bandwidth is fairly cheap and the acceptance of VoIP using trunking could be an apporpriate use of excess bandwidth. I agree that the Cable ISPs could realize an advantage over Telco DSL operations - but not because of they are required to cannibalize POTS and short-range long-distance revenue. I believe that it's more likely that the "last-mile" monopoly may be finally broken in favor of the Cable service providers (as opposed to ISP) and the traditional TELCO infrastructure isn't able to compete with the features provided by the 'value added" ISPs. The resulting decrease in use of LEC services will increase the cost of an already outdated facility infrastructure in rural as well as urban areas.

  76. You're a sheep in troll's clothing. =P by Zeriel · · Score: 1

    Except that your complaints are largely completely false rantings, and thus there's nothing to fess up to.

    Personally, I think the editors should ban any ip posting this Jihad crap until you "fess up" to being a complete tool.

    --
    "America has done some terrible things. But I know that Americans don't cheer when innocents die." -Dave Barry
  77. Re:POTS won't die for a while... DSL reliability ? by DennisCDuring · · Score: 1

    Does anyone know whether DSL has the same wonderful local exchange battery backup as POTS ? My understanding is that every local exchange has battery backup for something like 24-48 hours. Because DSL uses those lines they MIGHT be more reliable than my cable ISP , which in my little city (Mount Vernon, NY) is very unreliable (Time Warner Cable).