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VoIP And Cell Phones Eroding Traditional Telecoms

Lullabye_Muse writes "Yahoo! reports that telecoms in Europe and U.S. are losing in response to people switching their home phones for cellphones and dial up to cable modems. More info on specific VoIP discussed in latter part of article. The trend seems to becoming widespread, I guess 10 years and all the old wires are gonna start to be taken down."

43 of 390 comments (clear)

  1. A land-line...? by SIGALRM · · Score: 5, Interesting
    "We saw what would happen with Voice over Internet Protocol. Rather than allow it to happen to us, we decided to embrace the technology," a BT spokesman said.
    Smart move. The discount carriers are going to ramp-up competition, and this can only be good for us, the good ol' consumer. One of these days, VoIP will come to mobile, and that will be another milestone; we'll see how the big carriers respond to that.

    I still keep my land-line operational, though... I'm beginning to wonder why.
    --
    Sigs cause cancer.
    1. Re:A land-line...? by AlphaWolf_HK · · Score: 5, Insightful

      I still keep my land-line operational, though... I'm beginning to wonder why. Well, it's not really a bad idea considering that your landline is the most reliable. It'll work during bad weather, and it'll work during a power outage, or when your ISP is being neglegent and your connection is down.

      --
      Careful with names containing L slashdot.org/~AiphaWolf_HK slashdot.org/~AlphaWoif_HK slashdot.org/~AiphaWoif_HK
    2. Re:A land-line...? by BoldAC · · Score: 4, Informative

      I still have a land line... it's just through the cable instead of POTS.

      We've been using roadrunner's digital phone service since day 1. $30ish for anywhere, anytime, no LD. Call waiting, etc.

      We've had no problems with service until the last week. The cable/VoIP modem start cycling and trying to readjust over and over.

      The guy came out and changed the modems. He said that it is very, very common.

      So if you start losing VoIP service and your modem starts cycling... be quick to report it so they can change out your device.

      I can blast huge torrents over suprnova and talk on the phone at the same time without any problems. I've been very impressed with the bandwidth... In fact, my impression is that my bandwidth greatly improved when they switched me over to VoIP. I imagine they uncap the bandwidth when you get digital phone service so insure both services work well together.

      AC

    3. Re:A land-line...? by tarogue · · Score: 3, Informative

      That's because you're using wireless. The key idea behind "land-line" is the "line". I have cordless phones for the mobility, but I will always keep a wired phone as insurance.

      --
      Life sucks, but death doesn't put out at all. -- Thomas J. Kopp
    4. Re:A land-line...? by gcaseye6677 · · Score: 4, Informative

      Is it just me or do virtually ALL newer cordless phones suck? The best one I've ever had was a 900 MHz phone I bought about 7 years ago for $30. Except for needing a new battery a couple of times, it has never had any problems and still sounds great. I couldn't say the same for any newer models that cost a lot more.

    5. Re:A land-line...? by ZorinLynx · · Score: 4, Informative

      Don't be so sure. A lot of telcos have moved to using Remote Terminals (RT's) in neighborhoods. Basically, everyone's voice pairs terminate in the RT, and then there's a few pairs of fiber from the RT to the central office.

      The idea is to save money; you have to run MUCH LESS copper, since EACH SUBSCRIBER PAIR doesn't have to go to the CO; it also enables DSL services for individuals who would otherwise be too far from the CO.

      The problem: Unlike the CO, RT's don't have a backup generator. They only have batteries. So if there's a long-lasting power failure at the RT, you only get a few hours of battery backup before the RT runs out of juice, and all the local voice pairs coming out of it go dead. Sure, there's still light on the fiber coming from the CO, but what good does that do you?

      Now, in a crisis, telcos actually have portable generators on trailers that they can haul out to RT's serving critical facilities, like hospitals. But unless your residence shares an RT with a hospital, don't count on getting more than few hours of continued service after the lights go out.

      There's generally thousands of these RT's in areas where they're used; they don't have enough generators for all of them.

      -Z

    6. Re:A land-line...? by tomhudson · · Score: 3, Insightful
      Well, it's not really a bad idea considering that your landline is the most reliable. It'll work during bad weather, and it'll work during a power outage, or when your ISP is being neglegent and your connection is down.
      It WON'T work when you're not at home. BTW, my cell worked fine during the last power outage. Its been my only phone line for almost 2 years, and the only problem I've had is that sometimes I can't remember where I put the darn thing, it's so small. But it's a lot more convenient than a land line. I would never go back.

      When I wanted to get my home net connection, I had a choice between 5mb/1mb cable dsl or 3mb/0.5mb adsl - except that I would have had to also pay for a land line with adsl, so the faster cable connection is actually cheaper. It's a no-brainer (and my IP never changes with cable - an extra bonus for my home server).

    7. Re:A land-line...? by jriskin · · Score: 5, Interesting

      900mhz is a pretty good spot for cordless. The higher frequencies tend to bounce around and get absorbed by walls and structures. People forget that bigger numbers aren't always better.

      Personally I miss the days of 3-5watt analog cell phones. Range was about 10x what the little 800mW ones we carry around today. The networks are also about 10x more crowded. The reason they went to digital in the first place was just to get more people in the same amount of spectrum...

    8. Re:A land-line...? by jdreed1024 · · Score: 3, Interesting
      So if you start losing VoIP service and your modem starts cycling... be quick to report it so they can change out your device.

      Hrm, my digital phone went out. Internet too. Weird. Oh well, I'll just pick up the phone and call the cable company so ..... oh, crap.

      Enh, no big deal, I'll just dial in to the modem pool at work.
      AT&F1
      ATDT6175551234
      NO DIALTONE

      Oh, right. Crap.

      Honestly, that's the single biggest reason for me to keep my landline. Redundancy. I want the ability to dial out if cable fails. Heck, with my laptop, I can even have connectivity in a power outage (yes, I've done this before). That and one of my friends got screwed by this when his digital phone service crapped out. He was complaining about it to me over IM and the fact that he couldn't even call to report it. Yes, yes, cell phones, but cell phone reception can be pretty crappy in large apartment buildings, and that doesn't help for connectivity, since cell modems are expensive.

      --
      There is no sig, there is only Zuul.
    9. Re:A land-line...? by tomreagan · · Score: 5, Informative

      well, they are right, there is no such thing as a 911-only phone. if you want a phone number, you need to pay for service.

      however, any phone in the united states is required to permit 911 dialing at all times under all circumstances. if you truly only want the phone to work to dial 911, disconnect servce and leave the phones plugged in. in an emergency, pick it up and dial 911 - the call must go through or the phone company is in a lot of trouble.

      you won't have a number, but you'll have what you want.

    10. Re:A land-line...? by tomhudson · · Score: 3, Interesting
      Rogers does not permit me to run my own servers
      Neither does mine, so
      1. I set apache to listen to port 8080 instead of port 80
      2. I use dyndns.org to give me between 1 and 5 free site names
      3. I set up apache to do named vhosting for each free site name
      4. I append the port# to any url, like this:
        http://myfakeservername.dyndns.org:8080
      Benefits:
      1. Faster downloading and uploading (2x the speed of Bell's fastest business adsl line) - I know, because I've got 2 Bell "extreme hispeed" business adsl lines at the office, and together they give me about the same speed I get at home with 1 cable line, at half the price.
      2. My IP never changes - whereas with the Bell adsl service, it changes (ir)regularly - some days it changes half a dozen times. I used to have the servers text my cell when the IP changes, but it was getting rediculous. So instead, I just dump important stuff on my home server.
      3. Freedom. I'm taking my dogs for a walk in a few minutes, and I'm bringing my phone. Can't do that with a land line.
      4. Staying in touch. I call my friends, family, and daughters when I'm waiting in line at the store, out, or whatever. And they can reach me any time also.
      My cell works out to about $10 more a month than a land line with the same features (and I use it a LOT more than I would ever use a land line - I've done up to 3000 minutes some months)

      My cable connection is the same price as Bell's fastest service, but the cable connection is 25% faster, and it's always 5mbs/1mbs or better - when I overshoot it, I see them throttling me back to 5mb/1mb - they have LOTS of spare capacity, whereas some days the two business ultra-hi Bell connections just crawl...

      Last month I had 160 gig of transfer on my home server, and it wasn't used THAT much. I was still able to surf, etc.

      Also, the latency is a lot less with cable - makes everything seem quicker. If we could get cable at the office, we'd dump the 2 bell lines in a minute.

    11. Re:A land-line...? by rs79 · · Score: 4, Interesting

      It's not just you. I've lost count of how many we've tried and I swear the less you pay the better they work. Sony seems to be the worst; I did a 9 month gig at Sony and everybody there told me to avoid sony phones like the plague.

      $30 Unidens seem to work real well.

      --
      Need Mercedes parts ?
    12. Re:A land-line...? by Baricom · · Score: 3, Insightful

      There's much more than a wire between your phone and the one you're calling. Your voice gets digitized at a switch fairly near your home, after which it's split into chunks so you can send multiple "lines" down the same fiber optic cable. Along the way, these packets of data go through other switching equipment that sends your voice to wherever it's going, possibly over many different links for load balancing and redundancy in case a backhoe operator digs somewhere s/he shouldn't.

      Now, it seems to me the only differences between the phone network and VOIP is a) the A/D conversion happens much closer to your phone, and b) the network is the Internet.

      I don't mean to say that VOIP is reliable; I'm just pointing out that the phone company has the same points of failure as VOIP. The cable/DSL company might need access to your premises more often to swap out the modem, but reliability beyond that is up to the company.

      Of course, there's probably fewer DDoS attacks on the phone company networks, but that's another story...

    13. Re:A land-line...? by uberdave · · Score: 3, Interesting

      Cable is giving me 1.5mb/s for $55/month, but I can't run servers. DSL would give me 3mb/s for $30/month (plus $50 one time fee for a static ip address) and I can run servers. It would be a no brainer. However, despite being in the middle of one of the largest cities in the country, I can't get DSL where I live.

    14. Re:A land-line...? by cmallinson · · Score: 4, Informative
      Sorry, but if you disconnect a land-line service, you will have no dial tone... just a faint ground hum.

      It depends how many lines the phone company has available in the central office. If there are many to spare, they will just do a "soft-disconnect" and leave the line live. Most of the time, somebody hooks it up again anyways, and they only have to do a software change to activate it again. Saves a lot of money.

  2. Good by Anonymous Coward · · Score: 5, Funny

    Let the telcoms die. I haven't had a land-line phome for 6 months, and I don't miss it.

    Of course, cell-phone coverage could be bett--

    CALL ENDED
    Time: 2:10

    1. Re:Good by Aexia · · Score: 4, Funny

      I took you 2 minutes 10 seconds to say that?

      He kept running into the lameness filter.

  3. Never by gotpaint32 · · Score: 4, Insightful

    Never will copper be phased out by wireless, the old telcos may lose dominance, but until the reliability is there (powerouts, national emergencies, etc), most simply won't switch over to a fully landline free solution.

    --
    Nuclear war would really set back cable. - Ted Turner
    1. Re:Never by LostCluster · · Score: 5, Insightful

      I don't think wireless can successfully replace copper, but coax and fiber most certainly can. I don't think the landline will go away completely, but there's not much reason to use unshielded twisted pairs that have been installed outdoors decades ago when we now have better technologies available.

    2. Re:Never by flithm · · Score: 4, Informative
      I just canceled my local service and signed up for Primus' TalkBroadband Service. It's considerably cheaper than the regular land line, and the quality is pretty close.

      I too was initially worried about emergency services and so forth, however all this stuff functions as normal with a regular land line. I can call 911, or 411 or whatever just like anybody else can. In the event of a power-outage you can have your service forward to a cell-phone, voice-mail, or even another regular land phone. So I'm really not that worried about it. In the event that the power goes out and the cell phone is dead, and I accidentally cut off my leg, thus disabling me from crawling to my neighbors house to use their land phone to call 911, I suppose I'll just have to suffer :o).

      Seriously though, here's my experience so far:

      The Good

      Cheap.

      Works with regular phones, and it actually works pretty good.

      Says #$&@ you to the local @*&!@ telco monopoly.

      The Bad

      Can't use your regular house phone jacks (although if you need a phone in every room you can get one of those multi-set cordless base phones).

      The service isn't perfect. (A couple of times someone has called, and before I could pick it up, the system hung up on them). But let's be realistic, this is pretty new technology.

      All in all, I'm happy I decided to try out the VoIP phone. It saves me $10-15 / month, and lets me call way more long distance to boot. And I'm a no frills user. No calling features, no call display, I don't really call long distance. For someone who has a big calling feature pack and calls long distance, I could see a VoIP phone saving them a TON of cash.

  4. Surprise surprise. by cbiffle · · Score: 5, Insightful

    Because, if there's any industry that's bent over backwards to inspire customer loyalty, it's the telecoms. ...

    Yet another example of innovation sweeping the market out from under an industry that's too busy screwing its consumers to notice.

  5. Makes sense to me by Cylix · · Score: 3, Informative

    Currently, I don't have a traditional wired phone at the house. There isn't much of a need since everyone at the house has a cell pone.

    For me, my job requires a mobile phone and they pay the bill. I'm not even home often enough to worry about having a land line.

    I would have gotten one anyway, just for the security, but the phone company wants $80~ (US) to simply turn the bastard on.

    Now, if the telecom industry was to try to lure me back, it would simply be with affordability.

    I'm not even going to start on all the things I hate about the telecom service, but whats with charging not to have long distance? Someone tell me the logic in this one.

    --
    "You should always go to other people's funerals; otherwise, they won't come to yours." -- Yogi Berra
  6. Watching it happen... by codesurfer · · Score: 3, Informative

    I work for Canada's largest telecom, and this is something that we've been watching for the last few years. VOIP is being launched for business customers all over the country, and even consumer trials are being held at the moment. I'm not sure that landlines will completely disappear, but the impact to the old style telco is pretty evident. Ah, move with the times, I always say!

  7. They should take advantage of this opportunity ... by Anonymous Coward · · Score: 3, Insightful

    Most copper installed since the 50's is still being used. In NYC, some of the original lead-jacketed, paper-insulated copper phone cabling is still in service. LEC's (Local Exchange Carriers) should take this opportunity to replace their ancient, widespread infrastructure. Imagine how telco's could dominate the boadband market if they could bring fiber to all their customers.

    Contrary to most people think, the major Internet backbones are not anywhere near capacity. Telcos have NO shortage of bandwidth. Their problem is their inability to push the bandwidth people demand over analog copper lines. Fiber solves bandwidth problems and distance problems.

    -DJ

  8. I dunno by Judg3 · · Score: 3, Informative

    I've had Vonage now for about 3 weeks and have mixed feelings on it. I've already had a few outages, and while all the features are nice (Such as the network availability forwarding, where it forwards calls to my cell phone if the voice terminal isn't online), my cable inet service seemed a whole lot more reliable before I got it.
    Then again, it may be just the way my network is setup - seems like once or twice the problem has been with my firewall (Smoothwall) just 'locking up' during a 10+ minute long call.

    All in all, if I can iron out these minor problems, I think it will be a lot nicer then a traditional landline, and the price is right. I'm just not at the phase where I trust it whole-heartedly, so I'm glad I have my cell as backup

    --
    Looking for hardware (Currently need: Large Etch-a-Sketch) Have one? See my journal!
  9. Monopolies are not all bad by EmbeddedJanitor · · Score: 4, Insightful
    ... so long as they are benevolent. For widespread rollout of utilities, a monopoly works very well if they are not so profit oriented. It takes a lot of money and long-term thinking to roll out copper, especially to out-lying areas etc. A hard-assed quarter-by-quarter driven company would continue to look for the best profit which does not necessarily mean taking the technology to the people.

    Of course there comes a time when the monopoly no longer makes and it will fade out. Most customers will benefit but soome (eg. less profitable customers in outlying areas) will lose out.

    --
    Engineering is the art of compromise.
    1. Re:Monopolies are not all bad by MBCook · · Score: 5, Insightful
      I remember reading something about the head of Standard Oil (IIRC). One of his business advisors asked why they didn't raise the price of oil in the winter when demand spiked to make more money and he replied that he had to keep it affordable otherwise people would freeze to death.

      Monopolies aren't always bad, as you said. The problem with the way we see monopolies is that most of them take advantage of it to shaft the customer (on price, service, or anything else). It's when you mix monopolies with proffit motivations above all else that you get in real trouble. A benevolent monopoly can be good, as you said. Unfortunatly, I doubt we'll ever see benevolent monopolies (or even corporations) ever again. They just seem to get greedier and greedier.

      Of course, in most situations, a nice open market if best.

      --
      Comment forecast: Bits of genius surrounded by a sea of mediocrity.
  10. What about DSL? by chiph · · Score: 4, Insightful

    The trend seems to becoming widespread, I guess 10 years and all the old wires are gonna start to be taken down

    What about DSL?
    Not everyone will have FITL (fiber-to-the-curb), so the existing copper lines will still have a use.

    Chip H.

  11. Two disagreements by Octagon+Most · · Score: 5, Insightful

    First, the U.S. telecoms are not "losing." I work for one and it is making more money than ever. Sure land line usage has decreased for the first time ever, but revenue is up as more homes embrace broadband. And don't forget who owns the wireless companies.

    Second, the "old wires" are not "gonna start to be taken down." There is a billion dollar infrastructure buried under the U.S. that's going nowhere. And a century of tweaking has made it rock solid. A new generation growing up on wireless phones won't appreciate the five nines of reliability that the PSTN provides, but most of the population is nowhere near ready to give up the phone line that stays up during power failures.

    That said, the future is certainly IP based. The phone company knows that and will be well positioned to be the dominant provider. The RBOCs and the cable companies are the only players likely to survive in the broadband and IP-based future.

  12. finally the internet delays a trend by nbert · · Score: 3, Informative

    I'm quite sure that internet access is the main reason we still have so many home phones after all.

    Cable isn't that widespread in Europe, satelite links are quite expensive and they require a telephone line for upload. Access via power lines never really took off. There is nothing which beats 2 copper wires running to your house in terms of speed, reliability and price.

    Wireless LANs bringing internet access to entire blocks reduces the amount of home phones, since only one POTS is needed to get it online, but (at least over here) we won't see telcos going down the drain before ISPs are offering (cheaper than telco) area-wide wireless access for their services.

    I don't need a home phone at all, but my favorite monopolistic telco offers me DSL for a reasonable price. They also charge me for a mandatory phone connection using the same line, but it's still much cheaper than their closest competitor.
  13. I *don't* have a landline phone anymore. by soft_guy · · Score: 5, Interesting

    I just moved. When I was living in an area that was kind of far out of town, I did not have cell coverage at my house. Now, we just moved and we do. So, no landline phone! My wife and I just use our cell phones. Of course, we still have our old numbers which are in a different area code. That freaks people our when we order pizza.

    We used to have cable modem and used 802.11b for the past few years. Now, we have a neighbor who has a wireless network called "Linksys" with no WEP key set. So, we don't pay for internet anymore either. I suppose the day they put a wep key on it or shut it down, I will order either cable or DSL (we actually can get either where we live.)

    We still have to pay for our cell phones and for electricity, but we're saving like $200 a month without phone or broadband. (Math check: Our old cable company wouldn't sell us broadband without digitial cable and the total price was like $100 a month. Plus, phone bill including long distance since the cell phones wouldn't work from the house and all our relatives live in other states.)

    --
    Avoid Missing Ball for High Score
    1. Re:I *don't* have a landline phone anymore. by adsl · · Score: 3, Funny

      I hope your'e not my new neighbor who keeps ordering Pizza deliveries and uses my WiFi! But then I've just ordered one of those cell phone blockers;)

  14. Re:Same wires! by freebase · · Score: 3, Informative

    Actually a real T1 uses 2 pair, one for transmit, and one for receive. A T1 delivered by HDSL uses a single pair up to the smart jack, but it's still two pair (1,2,4,5 on the RJ45/RJ48).

    And if you're actually in a CO, trying to trace a circuit between DSX panels, there's a fifth wire, the locator wire, wired in as part of the cross connect. It provides a neat function - when you insert a looping plug in the dsx, lights on both DSX panels come on to tell you where the circuit is.

    --
    Sig??? I don't need no stinkin Sig!
  15. TimeWarner owns me now. by methano · · Score: 5, Informative

    We just switched over to VOIP with Time Warner, who also sends us cable TV and Road Runner. They get a big check from us every month. It seems to work about the same except that all those features on the phone (Caller ID etc.) now work. Oddly enough, my old local company sent me a letter yesterday offering about the same deal. Why didn't they send me the offer while I was still a customer?
    It reminded me of something that happened a few years ago at work.
    We used to subscribe to a Derwent patent publication that listed new patents in the pharmaceutical industry. It costs about $30K a year. I called and asked if they could give us a little break on the price. "No Way," they said. So we cancelled the subscription. A few weeks later, they call up and said that there was a mistake and they could give it to us for only $800/yr. I said "No Way." Pricing in this information busness is funny stuff.

  16. Imagine that by RabidChicken · · Score: 4, Funny

    *gasp* businesses adapting to new technology!

  17. Re:I miss ma bell by IANAAC · · Score: 4, Insightful
    but I remember being able to understand clear phones bills and passable customer service.
    Do you remember having to pay $0.40 a minute for a long distance call? I do.

    The main advantage you now see from the breakup is competition, however feeble, and lower pricing.

    Oh, and customer service has always sucked. It's not a new phenomenon.

  18. oldskool by celeritas_2 · · Score: 3, Funny

    I happen to like my landline service. When I'm gone or sleeping, absolutely no one can annoy me with their problems, requests, or irritating want to keep in touch, just not on a same-room basis. Also, I find there's something irresistably sexy about being completely lost, I might actually have to [gasp] talk to a real person and not a vibrating piece of cancer plastic making friends with and sterilizing my balls. Slashdot probably isn't the correct place to talk about wanting to be disconnected sometimes, but what are YOU going to do about it eh?

    --
    -- Checking emails and kicking cheats `till the day I die.
  19. Poor Poor Big Huge Companies... by ryanw · · Score: 3, Insightful
    Telephone and power companies are forced by the government to provide service to even the most remote areas without charging more money for service in the remote areas. So these companies predict growth and invest in building up areas mostly because they 'have to' but they are able to charge enough to everyone to ofset this problem.

    Now you think 'poor poor big company' because they're forced to service those remote areas and now they aren't getting the growth they have anticipated? WRONG...

    These companies are not forced to stick to old technologies. They have decided to stick to technologies for as long as they can, but the telco company could be offering much better solutions to everyone but they were 'comfortable' with the situation. They wanted to milk the old technology for all it had. Instead of spending all the resources trying to install new technologies in everyone's homes, they were trying to squish the new technology. Remember all those attempts at lobbying for internet taxes and things? Those were attempts to make internet more expensive than typical communications so they wouldn't have to change their ways. Their thoughts were, "Why install new technology when we haven't made our projected return on your current technology?". The answer is obviously, "To save your company from being obsoleted by the companies installing the new technologies."

  20. Re:I know it's kind of pointless, but by tzanger · · Score: 3, Interesting

    Yup, and it works so-so.

    You must use a codec that does not do any kind of compression or acoustic fanagling or it just won't work. I have been sending faxes in and out of our office (up to two at a time in either direction) for the last 3 months now without issue, so long as it only goes one hop to our PRI downtown. Faxes through our VOIP provider are spotty at best but we also have a Canon IR3300 fax machine as our primary fax device... they're the pickiest bitches known to the faxing industry.

  21. Spot on. by hot_Karls_bad_cavern · · Score: 4, Insightful

    "Unfortunatly, I doubt we'll ever see benevolent monopolies (or even corporations) ever again."

    If i had the points i had last night, i'd mod you through the roof. This is the most insightful and true statement i've seen today.

    i hate to be a defeatist, but fucking christ, who isn't trying to fuck you these days? It's not enough to have a chalet on some remote lake anymore is it? It's not enough to have 7+ figures in the bank is it?

    i just grow more and more disheartened that there are no truly benevolent companies in monopolistic positions these days. i won't glorify the "good ol' days" and sure as hell, there were sharks in those days, but i can't help but feel that i'm getting fucked, about to get fucked, or have the research to realize that, yeah, i am getting fucked by some company.

    Shit, maybe i'm just out of touch, but i'd hoped that by the age of 26 i'd not be so goddamn cynical and have to watch my back at every fucking turn....like maybe, just maybe, some corps just might give a fuck that i live to next year and buy the next edition. Know what i mean?

    Fuck, i already sound like my grandfather and at least he got be 50 before he was an ass about everything.

    1. Re:Spot on. by recycledpork · · Score: 3, Funny

      Fuck, i already sound like my grandfather and at least he got be 50 before he was an ass about everything.

      Its the future, things move faster now.

      --
      - w00t?
  22. Wow... by Mac+Degger · · Score: 3, Insightful

    And which real tech-savy person didn't anticipate this?

    Cell phone are the intermediate future, and VoIP (in the real sense, not in the sense that they're still connected at all to the copper wires, but just connected to the real internet) or just plain Data over IP ('cos what else is Voice?) is the future.

    Especially with wireless becoming cheaper and cheaper; what's gonna evolve is a free system of comms (wifi mesh, whatever) run by hobbyists, where the only role the telecoms are going to play is maintaining the fibreoptics between continents, large companies and cities which aren't easily connected by wireless (in all it's forms).

    What's really surprising is that the telco's didn't see this coming: I have a friend who worked for the largest (formerly only) telco in the netherlands, and hwen I told him about this, his response was..."but....but...that's illegal!?". He really didn't understand the power of public airwaves...and he was in strategic planning too!

    The only danger of course is that the telco's will lobby gov'ment to restrict private access to public bands....

    --
    -- Waht? Tehr's a preveiw buottn?
  23. New rules by mhollis · · Score: 3, Insightful

    The old telecom companies are embracing this technology for several reasons:

    1. The taxing structure is different or non-existent (collecting and paying taxes costs money).

    2. The consumer wants to head this direction (anyone remember the age of passenger rail in the US?).
      It is truly cheaper to provide this service, it's more efficient and may mean increased profitability.
      They do know how to provide telephony and know that their customers will trust their offering.
      They have not totally besmirched their name yet.

    It has never cost telephone companies anything more to send a telephone call across the country or next door. The higher prices they were allowed (by governments) to charge for "long distance" were allowed to enable them to build their infrastructure. The higher prices we pay for cellular service reflects the need of cell phone companies to build out infrastructure so that they can serve their customers everywhere.

    Now, telephone companies are finding that there is not just their infrastructure, but a whole new and cheaper infrastructure out there that was built without their investment. Some was paid for by the governments, some was paid for by private industry or other telephone companies. And they can use it -- free! Imagine the increases in profitability when you can sell a service that costs you little or nothing.

    Here in the US, one of the reasons why VOIP from telecom companies is so cheap is because the playing field changed. They set up different companies for VOIP and cellular service and these companies don't have labor unions. So not only is the infrastructure cheaper, but labor is cheaper.

    I note that BT immediately jumped on this bandwagon. They are, perhaps, the most hated company in the UK because they have held a monopoly for so long and refuse to bring pricing down to more sane levels in favor of keeping profits up. I kind of wonder at BT because they have generated a great deal of animosity in the public they "serve" in exchange for profits that are not visibly plowed into improved infrastructure.

    --
    Gods don't kill people, people with gods kill people.