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The Voice Over IP Insurrection

Chris Holland writes "Daniel Berninger wrote the most informative article about Voice over IP I've ever read, over at Om Malik's blog. It outlines in great details the history behind the evolution of traditional communication technologies framed within the convergence of various Internet-related technological advances, and the challenges PSTN telcos are facing to hold-on to their shares of this lucrative pie. Beyond mere technological issues, Berninger offers great parallels and insights on past, current, and future governmental regulatory policies. A must read for anyone who's ever talked on the phone."

15 of 168 comments (clear)

  1. Informative article? by timecop · · Score: 5, Insightful

    Informative article?
    On a BLOG?
    Full of factual errors and void of any actual useful content?

    Nothing to see here, please move along.

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  2. Re:real voip issue: customer support by MonsterChicharo · · Score: 2, Insightful

    Perhaps the big savings is in the corporation side rather than on the individual customer side. Big corporations are also big spenders in the telephone business, and not so individuals. Often this corporations get special deals regarding support, sometimes in site.

    It could be that this is not yet prime time for home users in the VoIP arena.

  3. Re:I don't understand why by KillerCow · · Score: 3, Insightful

    I don't understand why they don't simply expand the pie. Let the PSTN system become broadband, let somebody else handle voice calling.

    Because change threatens existing business models.
    Who gets to lobby government? Existing businesses.

  4. What about England by Deliveranc3 · · Score: 1, Insightful

    England is so backwards that you still have to pay for local calls. Does calling England cost more?

    I've been to China and they don't even have that, what's up with that? How can you create a socialist paradise without free communication.

  5. Re:I don't understand why by cmowire · · Score: 3, Insightful

    Because, you are requiring a company that has been making money for the past hundered years on the PSTN network suddenly drop everything and go towards something that may or may not actually make them money.

    Remember, the more VoIP comes out, the more able you are to write off your current provider. With VoIP, you can just have a cable modem or WiMAX service and no phone line at all. That's not good for the incumbent PSTN providers.

  6. Slashdot needs to get the lead out by Deliveranc3 · · Score: 3, Insightful

    And find a review of all the VOIP tech's so we can all get on the same network.

    Heck there are open souce versions for linux already.

    Every second we delay the phone companies are fixing to make something that should be free cost money.

    And this is a perfect app to include in linux distros.

  7. All-in-one is buggered. by sfled · · Score: 3, Insightful

    When it breaks, it's all-in-none.

    My printer is my printer. My scanner is my scanner. My fax machine is my fax machine.

    If my printer breaks I can still scan; if my scanner breaks I can still fax; If the fax breaks, my printer doesn't care.

    My phone line is my phone line. My mobile line is my mobile line.

    My ISP line is also unfortunately my CATV. The CATV line is dependent on the electric utility (line amplifiers have batteries that last only a few hours).

    I will be switching to ADSL soon. Why? because during the last hurricane, the phone never went out. I lost electric & CATV...no power, no TV, no internet.

    All-in-one is buggered. Of course, that's just my opinion. I could be wrong; I often am.

    --
    I'm not really a web designer, I just play one on the Internet.
  8. Hype by jav1231 · · Score: 3, Insightful

    VoIP is hyped to death. Literally. It's hard to peddle something that someone already has, phone service. I remember NetWorld Interop in like 94 or 95. VoIP was going to be so big, I wouldn't be able to take crap without VoIP processing it somehow. 10 years later, it's in almost exactly the same state it was in then.

    1. Re:Hype by zentec · · Score: 4, Insightful

      You're absolutely right, it's about in the same state it was in 1995. But only because the cost of broadband didn't make it feasible.

      But now that broadband is cheap, it's starting to make a lot of sense, especially with companies that have large WANS full of bandwidth. The company I work for has 100 megabits of fiber connected between 8 locations through a company called Telco. They're paying $10,000 per month for the fiber and since the satellite offices need to call corporate a lot, VOIP on our own bandwidth saves thousands on phone bills per month.

      Cheap broadband for the residential user makes VOIP a possibility too. I ditched my landline last month and ported the number to my wife's cell phone. The phone in the house is Voicepulse and it's been as reliable or better than the Verizon POTS. You can't tell the difference in call quality.

      Six years ago, my local telephone bill was $22 per month with caller-id. My last POTS bill was close to $60. Really, all telcom reform has done for me is drive up my bill to outrageous amounts.

      The incumbent telephone companies all have their own VOIP service. Problem is, they think that VOIP is reason enough to switch and they offer paltry savings on VOIP as compared to POTS; if there's any savings at ALL. Verizon's VOIP service was $40 per month and I was paying close to $60 with just caller-id. Somehow they think that phone service should guarantee them a fixed amount of revenue. VOIP offers the very real chance at local telephone competition without requiring new players to build their own networks or rent from the incumbents.

      In fact, this has been the whole impediment to local phone competition. The incumbents have for years resisted renting out their networks to competitors. They've tried legislation and regulations to make it cost prohibitive and have pretty much succeeded while giving themselves a paltry profit line in interstate and intrastate access fees.

      The gig is up; everyone stands to save money if they don't use the traditional telephone network.

  9. Re:As someone who actually used it... by homer_ca · · Score: 2, Insightful

    Same here. I tried Freeworlddialup, which lets you call toll free POTS numbers for free. The sound quality and lag weren't as good as a regular phone. My friends on Vonage are pretty satisfied though, so maybe you get what you pay for. From what I've seen wireless is replacing landlines more than VoIP. With good signal at home my Verizon Wireless phone sounds as good as a landline and has never dropped a call at home. With bad or no signal it's useless.

  10. Re:They'll be a fight by BenFranske · · Score: 2, Insightful
    Why would Verizon, for example, provide customers with the infrastructure for free VOIP and television over IP when they'd be slicing into their own revenue source?
    Because Vonage and the other VoIP providers already are slicing into their revenue source with low-cost VoIP. Verizon and the other RBOCs are already hemorrhaging customers and this is an effort to try and keep some of them. Remember most money in the utilities business is made by charging companies "business rates" which subsidize home/personal rates. Besides some people will never be comfortable giving up their landline anyway. I know lots of elderly people who still pay a phone rental charge to the phone company because they "don't trust those phones you buy in the store." These are the people the phone companies make money on.
  11. Re:Fanatic by erikharrison · · Score: 2, Insightful

    Actually, you should have kept reading. For one, hyperbole is standard in this kind of literature.

    Two, he makes the argument (quite well, I think) that other than providing a similar kind of service there isn't any similarity between POTS technology and VoIP. He points out that PSTN is an almost intentionally neutered technology, and VoIp isn't.

    You sayd VoIP should have been done a long time ago - duh! We've established you didn't read the article, so of course you missed the reasons why VoIP is growing and has taken this long to get here (namely the fact that it's a different technology, and so interfacing with PSTN is hard, especially hard considering the desire of most telco's to keep VoIP out).

    As for pronouncing it "voyp" not only is your claim silly, but the article is text m'kay? No pronunciation invloved.

  12. Disruptive Technology by Mazzaroth · · Score: 4, Insightful

    Within five years, the telco world will have changed.

    We will observe a strong fragmentation of the telecommunications world as many small companies will try to get their share of this multi-bilion dollars market. And just because of the low entry cost (look at asterisk, Convedia, Ubiquity, Appium, and many other players way too numerous to list here), you don't have to be a huge company to deliver services in that emerging market of VoIP services (here, by VoIP services, I don't only mean providers, but also secondary services like voice recognition, IVRs, vertical markets services, unified messaging, value-added access resellers, etc.). Maybe after, the market will reconsolidate though.

    VoIP is to telco what PC was to computing, what the Amiga Video Toaster was to TV productions, what Napster was to RIAA, what iPod was to MP3 music, what Internet was to information access, what Word, Excel and Powerpoint was to corporations, ... It's a disruptive technology.

    It's a fact; those who can't adapt to their changing environment will disappear. And new dominant players will take their place in a new order...

    I wonder what my phone (ok, communication device) will look like and will allow me to do in 5 to 10 years from now.

  13. 911 was designed for landlines by billstewart · · Score: 2, Insightful
    First of all, your cell phone will work just fine even if your power is out. If the VOIP companies were clueful, they'd have somebody build them a VOIP router with a cell-phone circuit built in so you can make emergency calls.

    Of course VOIP and 911 don't get along - 911 was designed to work in a landline environment, with communications architectures tightly tied to Class 5 telco switches and database architectures designed for phones that stay in one place, and the 911 folks haven't been willing to adapt their systems to accept VOIP connections even though it wouldn't be that hard. VOIP, like wireless, presents some new technical challenges because the equipment is portable, and if you bring your VOIP box on a business trip with you and have to call the fire department, you want firetrucks showing up where you are, not back at your house. But there are ways to design around it, whether you do something with GPS or adapt your DHCP servers to pass you geographical info or whether you have the VOIP box/software/etc. let you tell it your address.

    Complaints about VOIP and 911 are usually a cover for real complaints about VOIP and wiretapping. The folks who like wiretapping are annoyed that changing technology makes their tools obsolete, and want to force the technology to adapt to them, rather than the other way around, and they tend to use 911 as a lever to do that. After all, you want an ambulance to be able to find you if you're hurt, but you probably don't want the police to be able to locate you within 10 meters and follow you all day, so that's not the motivation they advertise for mandating that new cell systems provide user location. Similarly, the wiretappers _really_ don't like peer-to-peer flexible technology, and they're used to having hooks into traditional telcos to control them.

    --

    Bill Stewart
    New Fast-Compression-only CPR http://preview.tinyurl.com/dy575ks
  14. Re:Processor Speed by mshurpik · · Score: 2, Insightful

    >POTS persisted for business reasons associated with monopolization of telecom and not technology or sound quality.

    The guy who wrote this article is failing to appreciate some of the technology goals of plain ol' telephone service (POTS). For example, reliability of telephone switches is in the multiple-nines percent uptime. Analog lines provide streaming without packet-loss, and the entire network is self-powered. All run over plain copper wire.

    In other words, the phone network has opted for simplicity and reliability over innovation. It is no surprise then, that digital land-line service has made few inroads in ten years of widespread internet use. Sitting in front of a bulky computer praying for the software to work is simply too much overhead for most people to bear.

    While digital may become the dominante media for voice in the near future, there will remain a market for direct voice connections. Just look at the popularity of Nextel cell phones and you will see that direct connections have big market appeal.